Late Fees (by Alex [GA]) Sep 21, 2022 6:48 PM|
Late Fees (by MC [PA]) Sep 21, 2022 7:04 PM
Late Fees (by Sorta Blonde [CA]) Sep 21, 2022 7:17 PM
Late Fees (by Wmh [NC]) Sep 21, 2022 8:15 PM
Late Fees (by Vee [OH]) Sep 21, 2022 8:41 PM
Late Fees (by DJ [VA]) Sep 21, 2022 9:04 PM
Late Fees (by Alex [GA]) Sep 21, 2022 10:31 PM
Late Fees (by Hoosier [IN]) Sep 22, 2022 2:41 AM
Late Fees (by gevans [SC]) Sep 22, 2022 6:46 AM
Late Fees (by S i d [MO]) Sep 22, 2022 10:58 AM
Late Fees (by plenty [MO]) Sep 22, 2022 11:39 AM
Late Fees (by Alex [GA]) Sep 22, 2022 11:41 AM
Late Fees (by Sorta Blonde [CA]) Sep 22, 2022 11:44 AM
Late Fees (by Lucy [IN]) Sep 22, 2022 5:23 PM
Late Fees (by Alex [GA]) Sep 23, 2022 12:13 PM
Late Fees (by Jim in O C [CA]) Sep 23, 2022 2:35 PM
Late Fees (by zero [IN]) Sep 26, 2022 1:01 PM
Late Fees (by WMH [NC]) Sep 26, 2022 1:20 PM
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Late Fees (by Alex [GA]) Posted on: Sep 21, 2022 6:48 PM
What is the fair amount of Late Fees? Is it per Day or a % of Monthly rent?
Consider following scenario,
Rent is $1000 and is due on 1st. Tenant does not pay within first 3 days. You send a notice to 'Pay or Quit' and file for Eviction.
Tenant answers Eviction papers and you get a court date on 30th of that month. Tenant comes to Court with Rent and Late Fees.
Question is, how much should be the Late Fee?
Case 1 - Per Day $10 (1% of monthly rent), so for 30 days it is $300.
Case 1 - Per Day $20 (2% of monthly rent), so for 30 days it is $600.
Case 3 - Flat 20%, so the Late Fee is $200.
Case 4 - Flat 3%, so the Late Fee is $30.
Which one the Judge is likely to agree? --99.98.xxx.xxx
Late Fees (by MC [PA]) Posted on: Sep 21, 2022 7:04 PM
My judge allowed me to adjust the fees according to the court date. I had mine at $5 a day after the 5th plus a posting charge. --73.230.xxx.xx
Late Fees (by Sorta Blonde [CA]) Posted on: Sep 21, 2022 7:17 PM
My rent is due on the 1st of each month with NO allowance of any time. My late fee is $10.00 a day if it's not paid by midnight on the 1st. I make sure it's all written in the lease that late fees will be charged for every day past the 1st, BUT it does not mean I am allowing late rent and may, at my discretion, start filing for eviction after 3 days. I explain this in detail with new tenants and make sure they know there is no leeway. So far, my tenants (of 2 years this month) have only been late 3 times (with good reasons) and have totally paid the 10 bucks per day and have paid up by the 3rd day. they even tried to pay me an extra $5 bucks because it was later on the 3rd day. I gave it back. Maybe I scared them? Awesome tenants are nice to have. --174.65.xxx.xx
Late Fees (by Wmh [NC]) Posted on: Sep 21, 2022 8:15 PM
Both timing and amounts are spelled out in our state law. --74.110.xxx.xx
Late Fees (by Vee [OH]) Posted on: Sep 21, 2022 8:41 PM
Read your local and state tenant laws, ask other folks at meetings or at least in the courtroom hallway. Here in OH it is widespread 5 percent after the first - no grace period here. --76.190.xxx.xxx
Late Fees (by DJ [VA]) Posted on: Sep 21, 2022 9:04 PM
It depends on your laws and your judge.
Late Fees (by Alex [GA]) Posted on: Sep 21, 2022 10:31 PM
MC [PA] $5 each day is good but it would be good if I know the monthly rent amount. Is $5 for monthly rent of $1000?
Sorta Blonde [CA] $10 each day is good but it would be good if I know the monthly rent amount. Is $10 for monthly rent of $1000?
Vee [OH] 5% is good but is it a flat 5% of monthly rent? Is for 1 day late? And is it same if the tenant is 30 days late? --99.98.xxx.xxx
Late Fees (by Hoosier [IN]) Posted on: Sep 22, 2022 2:41 AM
If it’s not in your lease, you may have an issue collecting. Our lease says $25 for the first day, additional $10/day after that.
But, if this person waited for a court order to pay, I think I’d not accept the payment and instead get the eviction order. --99.92.xxx.xxx
Late Fees (by gevans [SC]) Posted on: Sep 22, 2022 6:46 AM
Bottom line, it's according to your local laws and judges.
We like a progressive fee, it gives them an incentive to pay NOW.
By law we must give five days grace. on the 6th we charge $50 late fee with additional $10 per day.
We have never in 22 years had it challenged in court.
Our rents vary from $650 to $1250. --216.218.xxx.xx
Late Fees (by S i d [MO]) Posted on: Sep 22, 2022 10:58 AM
I do a big up front hit (10%) on day 1 late, then $5 per day after. That big hit is enough to discourage most late payers, and the $5 per day keeps it adding up to encourage them to get the rent taken care of.
My local judges cap late fees at $150 that they will award on a money judgment if we end up in court, but that doesn't mean I can't CHARGE more and BILL anything the judge doesn't allow against the deposit. It's important to know the distinction between what the law says (it is silent on any late fee limits) and what a group of judges say they will enforce in a courtroom action.
As a side note on late fees: we all know there are many unaccounted costs with eviction that include the time it takes to repair and clean the unit that never get added onto the judgment, but they should be the defaulting tenant's responsibility. Therefore, my goal is to legitimately use up every ounce of the deposit with other charges to cover those costs. Late charges are one. Early Termination Fee (which applies if they breach...the lease still got terminated early due to their actions) is another. A lot of LL's get lazy and "just keep the deposit." Nope, can't do that. Gotta charge for it and account. ETF and late fees are easy and understandable. Once their deposit goes to zero, then I have full rights to collect all damages, unpaid rents, fees, etc.
Always CHARGE, even if you don't think you'll ever get PAID. Life has a funny way of working out when you ask for something. And when you never ask for it, you never get it. So ALWAYS ask (i.e. CHARGE).
Late Fees (by plenty [MO]) Posted on: Sep 22, 2022 11:39 AM
Judges like to go by the lease. Read the lease what does it say, charge that amount. You can't just make stuff up. --172.56.xx.xxx
Late Fees (by Alex [GA]) Posted on: Sep 22, 2022 11:41 AM
Thanks Hoosier. So if I get the Eviction Order then do I have to forego the backed up rent and late fees that the tenant brings to court?
gevans [SC] makes sense with your rent and late fee structure. I give 3 days grace period then it is flat amount per day until paid.
S i d[MO] I will follow the big hit first then incremental charge per day.
"It's important to know the distinction between what the law says (it is silent on any late fee limits) and what a group of judges say they will enforce in a courtroom action."
Well understood the subtle meaning behind it. --99.98.xxx.xxx
Late Fees (by Sorta Blonde [CA]) Posted on: Sep 22, 2022 11:44 AM
Hi Alex (GA). My rental is $2200. a month. $10. is a minimal amount. San Diego Area is terribly high on rents. Mine is under priced and is only a 2 bed 1 bath, 800 sq foot, no frills house. I used to have no late fee and a grace period of 5 days and found that 'grace period' was always assumed to be that the rent was due at the end of that. Didn't work well at all. A tiny bit of 'penalty' seems to work for the last 3 years and 2 groups of tenants. Like Sid says, if you don't charge, or don't have the rule, they will take advantage of you. --174.65.xxx.xx
Late Fees (by Lucy [IN]) Posted on: Sep 22, 2022 5:23 PM
The last judge I had wouldn't accept any higher than 10%. He retired so I've not had to test out what the new one will accept. You can put in your lease whatever you want. You "may" collect it before court...but the judge/court may limit you to a certain percentage. --64.184.xx.xx
Late Fees (by Alex [GA]) Posted on: Sep 23, 2022 12:13 PM
10% cap is a problem. That is what tenant waiting for and thrive on. They know that they can pay late and pull on as much as possible.
Late Charges per day makes sense because they have an incentive to pay earlier and not incur additional charges.
By the time you get a court date, they are well over a month in terms of delay.
In case if he/she does not show up in court, they get away by not paying anything. (Deposit does not cover much and Garnishing is an option but takes long time and additional expenses). --99.98.xxx.xxx
Late Fees (by Jim in O C [CA]) Posted on: Sep 23, 2022 2:35 PM
In California our late charge cannot be punitive but must reflect our actually out pocket cost. I use $5.00 per day --99.23.xxx.x
Late Fees (by zero [IN]) Posted on: Sep 26, 2022 1:01 PM
Same here. What county are you in? Our new judge is pretty good. I appreciate him. He was a city judge before this but his eyes opened a lot when he saw how the deadbeats work around here.
I guess maybe I can send an email and ask about his late fee structure. I hate to find out in court that he won't allow what I am asking for. Makes me look dumber than I am.
Then again I hate the idea of only having a 10% penalty. The deadbeat can wait the entire month for the same price. Some of them realize it and do just that.
Late Fees (by WMH [NC]) Posted on: Sep 26, 2022 1:20 PM
NC rental laws encourage eviction as fast as possible. Late fees are limited, judges rarely award them, financial judgments won't be awarded anyway unless Tenant shows up in court (they almost never do.)
Therefore we tell prospects during our initial discussion - prior to signing a lease - that while we can and will collect late fees if necessary, we don't want them. We want the RENT and if not paid on time, we will evict without blinking. I point out to them that it's like their boss saying, "Sorry, can't pay you this week, I had to go to the doctor..."
Nope. Don't pay, can't stay. --74.110.xxx.xx
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