Late Fees (by Me [CA]) Oct 8, 2018 2:12 PM|
Late Fees (by JB [OR]) Oct 8, 2018 2:43 PM
Late Fees (by AllyM [NJ]) Oct 8, 2018 2:44 PM
Late Fees (by Doris [OH]) Oct 8, 2018 2:57 PM
Late Fees (by Scott [IN]) Oct 8, 2018 3:04 PM
Late Fees (by Moshe [CA]) Oct 8, 2018 3:23 PM
Late Fees (by cjo'h [CT]) Oct 8, 2018 3:49 PM
Late Fees (by moby [IN]) Oct 8, 2018 4:41 PM
Late Fees (by NE [PA]) Oct 8, 2018 4:44 PM
Late Fees (by RR78 [VA]) Oct 8, 2018 5:06 PM
Late Fees (by Salernitana [CA]) Oct 8, 2018 6:07 PM
Late Fees (by cno'h [CT]) Oct 8, 2018 10:41 PM
Late Fees (by Shelby [IA]) Oct 9, 2018 7:16 PM
Late Fees (by WL [CA]) Oct 12, 2018 7:46 AM
Late Fees (by Me [CA]) Posted on: Oct 8, 2018 2:12 PM
We are considering implementing late fee. Too many tenants are taking advantage and paying days after the 1st. We are thinking a $50 late fee after the 3rd. For those of you who do charge a late fee do you think it encourages people to pay on time? --47.149.xx.xxx
Late Fees (by JB [OR]) Posted on: Oct 8, 2018 2:43 PM
"...do you think it encourages people to pay on time?"
100 percent more than having no late fee.
Just check with your state/local laws/regs.
In OR, we cannot implement a late fee before the 5th. --24.20.xxx.xxx
Late Fees (by AllyM [NJ]) Posted on: Oct 8, 2018 2:44 PM
no. If they run into a financial problem they will use the rent and pay the late fee. --73.178.xxx.xx
Late Fees (by Doris [OH]) Posted on: Oct 8, 2018 2:57 PM
We have a late fee but donít call it that. Our lease states rent is X, but if paid by the first you can deduct $25. Very seldom have any one pay late and if they do, we remind them they donít get the deduction. Seems to work well for our tenants. --74.140.xxx.xxx
Late Fees (by Scott [IN]) Posted on: Oct 8, 2018 3:04 PM
A local judge told me that they only "allow" $2 per day late fee. Not much of an incentive. So I try to concentrate on moving quickly with the eviction process. A timely summons is excellent encouragement. --108.219.xx.xxx
Late Fees (by Moshe [CA]) Posted on: Oct 8, 2018 3:23 PM
You're in CA. You better get some good advice before you implementation.
Nowhere is a late fee allowed as a penalty to enforce behavior. Basic principle of contract law says that the penalty for late payment is the cost to creditor because the payment was late, and that is generally fair market interest.
CA courts have dealt with the problem and realize that late payment of rent carries virtually no costs to landlord beyond interest and some trivial administrative cost. The use of the late payment fee as a penalty, even a penalty to ensure promptness, is forbidden by basic principles of contract law, even though some less sophisticated courts haven't realized that, yet.
Late Fees (by cjo'h [CT]) Posted on: Oct 8, 2018 3:49 PM
I'm only a country boy,so don't know much about contract Law,but here in Connecticut The State gives a Grace Period of ten days ,Don't know who administers the Grace or if its a reciprocal thing.or if you have to be appointed.............charlie........wouldn't think they'd just let anyone do it,would you?......................... --32.214.xxx.xx
Late Fees (by moby [IN]) Posted on: Oct 8, 2018 4:41 PM
It absolutely discourages late payment. Since I implemented no grace period and a 10% late fee, out of over 200 rent payments I have had 3 late payments and the late fee was paid each time. I haven't had to go to the next step of filing for eviction after 3 days late. The late fee has too be large enough to make a difference and it has to enforced. --68.60.xxx.xx
Late Fees (by NE [PA]) Posted on: Oct 8, 2018 4:44 PM
Regarding late fees and contract law and all that yadda yadda, charge em! Charge them until a judge says you can't. Join a local landlord association and see how the boots on the ground are doing it.
You need to enforce it as a punishment to keep them motivated. Some offer a discount for early payment. Get with real life LOCAL landlords and see how they are doing it. --50.107.xxx.xxx
Late Fees (by RR78 [VA]) Posted on: Oct 8, 2018 5:06 PM
You never want to go into court looking unreasonable or like a greedy LL. Keep the Judge on your side.
Late Fees, charge as much as you can. But what your local courts consider reasonable.
So listen to others from CA and even better ask other local LL or go sit in court for a day.
Just about everywhere in my state. 10% of the total monthly rent is considered a reasonable late fee.
But 20 years ago one small town I had court in would only allow 25.00 late fee. So it can be different in rare cases depending on the court. --73.152.xx.xxx
Late Fees (by Salernitana [CA]) Posted on: Oct 8, 2018 6:07 PM
Does the lease that the current tenants and you have signed include a clause about a late fee for rent received after a certain date? You might do a search on this forum for the terms "zero tolerance" to see what other landlords have done with late-paying tenants as research on what others do with late-payinng tenants. Also, have you ever issued a 3-day-pay-or-quit notice?
Best of luck. I'd be curious about what you decide and whether the tenants comply. --107.3.xxx.xxx
Late Fees (by cno'h [CT]) Posted on: Oct 8, 2018 10:41 PM
If the state can give ten days,I can give ten days also,I'm in much better financial shape than the State is........charlie............................ --32.214.xxx.xx
Late Fees (by Shelby [IA]) Posted on: Oct 9, 2018 7:16 PM
Yes, late fees help! Youíll always have the people that canít budget , that pay late no matter what. But it keeps others paying on time. One of mine pay late almost every month and pay that late fee.... another pays right before the late fee goes into effect. And a couple more pay on time. Really depends on the person. I had a renter that always waited months to pay her water bill. Got shut off then she went and paid it along with the reconnect fee. Talk about a waste of money. --173.26.xx.xxx
Late Fees (by WL [CA]) Posted on: Oct 12, 2018 7:46 AM
Local County charges a 50 percent late fee to LLs for yearly housing permit. Compare government late fees - seems that the rule should also apply to the late fees governments give to owners and LLs but the judges let them charge extortionalte fees (that also pay the judges salaries) --201.140.xxx.xx