Rent is $120 / wk. Late fee is 10% = $12.

Cleaning fee due $35. (he acknowledged his fault)

Total due $155

Paid $120

All money received is applied first to any outstanding balance owed, then to the current rent.

Giving notice of non-payment.

Charge the whole $12, or $3.50 for only the amount missing?

I'm not sure the right answer. But this is a good argument for not charging percentages.

Tenants need simple math. I use $10/day. Doesn't matter if they owe $1 or $1000, the late fee is $10/day.

If the late fee is 10% of the balance outstanding, it would be $3.50. He's not worried about $3.50, and since there's not an additional fee added only daily that I'm aware of, he will pay whenever he feels like it.

I do as gevans does. Unless your state law mandates a percentage, a simple "$X the first day and $Y every 24 hours thereafter" is better.

I am transitioning all my leases over to $25 the 1st day late, then $5 each additional day. The reason I do a big hit the first day is I had too many tenants using the $5 late fee as a "float" for a day or two, then they'd not pay it and I'd have to hassle them. It got a little silly. I needed to hit them a little harder to make it convincing. So far, two tenants have paid it one time and have not been late since, and others on this plan have always been on time. Seems to be working.

My locals judges only award up to $150 if we end up in court, but other than that they don't care.

If you do a partial fee you are opening the door to them fooling around and arguing with you. Hit them with the full fee. Explain that it is a fee And if they are one minute late the fee is due.

Check with your state's law on late fee..

DJ,

Whole fee.

Re-read your law. Does it say x% late fee or maximum of x% per month?

We charge $5 per day “to encourage promptness” as the state suggests.

We have been suggesting to our judge that $5 per day on $1000 rent is not “encouraging promptness” and needs to be higher.

I must mention: ZERO TOLERANCE on lates is more effective than any late fee. It works.

my magistrates only allow 10% - no daily fees.

To "encourage" timely payment why not charge whatever you want, realizing should you ever get to court the judge may deeply discount (or waive all) your late fees.