 Collecting late fees? (by Bsman [AL]) Mar 5, 2025 9:34 AM
 Collecting late fees? (by JS [CA]) Mar 5, 2025 9:55 AM
Collecting late fees? (by S i d [MO]) Mar 5, 2025 10:48 AM
Collecting late fees? (by Mapleaf18 [NY]) Mar 5, 2025 11:10 AM
Collecting late fees? (by WMH [NC]) Mar 5, 2025 11:24 AM
Collecting late fees? (by Jason [VA]) Mar 5, 2025 12:28 PM
Collecting late fees? (by Mapleaf18 [NY]) Mar 5, 2025 2:27 PM
Collecting late fees? (by plenty [MO]) Mar 5, 2025 8:45 PM
Collecting late fees? (by zero [IN]) Mar 6, 2025 8:11 AM
Collecting late fees? (by Nana & Papa [IN]) Mar 6, 2025 2:48 PM
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Collecting late fees? (by Bsman [AL]) Posted on: Mar 5, 2025 9:34 AM
Message:
Hello Everyone,
What is the best technique to use in collecting late fees for rentals? When some of my tenants are late they send the monthly rent but not the late fee. The only option we have here is to drive over there and return the whole rent paid and then wait for them to come up with the late fee. Too much time involved and i would rather find a better method. Thanks for your advice...... --69.228.xxx.xxx |
Collecting late fees? (by JS [CA]) Posted on: Mar 5, 2025 9:55 AM
Message:
In the past I have evicted over late fees but I am not sure the new laws would make that possible. Now once in a while I still have a late payment and I tell the tenants and they just add it to the next rent. It hasn’t been an issue.
My line is usually something like, “Thank you for the late fee. As you know just like yours my time is valuable. I consider the time I spend collecting rent and late fees when I calculate rent increases. I would appreciate timely payments in the future.” I would follow through as well if you have the stomach for it --162.204.xxx.xxx |
Collecting late fees? (by S i d [MO]) Posted on: Mar 5, 2025 10:48 AM
Message:
First, I would try to avoid having the tenants "send" anything. That opens excuses to "lost in the mail"... "the mail delayed my payment" and so forth. That often causes more problems than unpaid late fees. The best situation is one where the landlord TAKES the rent on the rent due, such as using bank ACH services or the ClearNow electronic debit service available here on the MR. LL site. That puts you, the LL, in control of getting your rent in full and on time.
That said... if that's not possible for you, the following should still apply.
My lease specifies that funds received are applies to fees and charges FIRST and rent LAST. Example:
Rent: $1000
Late fee: $50
Amount received: $1000
$50 goes to cover the late fee.
$950 goes to cover part of the rent.
Final result: tenant is short $50 on rent.
Now, why does that matter? In my State I can evict if the tenant is short even $1 rent. This prevents them from piling up tons of late fees that go unpaid and still being "on time" with the rent.
Last year, I collected 100% of late fees that were due. As a result of being a stickler on late fees, MOST (95%+) of my tenants never pay late, and those few that do pay up within a few days at most.
Consider implementing this strategy. Good luck!
--184.4.xx.x |
Collecting late fees? (by Mapleaf18 [NY]) Posted on: Mar 5, 2025 11:10 AM
Message:
T: "I'm going to be paying late this month."
L: "Thanks for the update... there will be a late fee of $X. Your total for this month will be $X." --172.59.xxx.xx |
Collecting late fees? (by WMH [NC]) Posted on: Mar 5, 2025 11:24 AM
Message:
Before we used Buildium and they could see what they owe, we billed them via email. Or if they paid using a cash app of some sort, through that. --173.28.xx.xxx |
Collecting late fees? (by Jason [VA]) Posted on: Mar 5, 2025 12:28 PM
Message:
It depends on your lease. Mine says that any money received is applied toward past due balances first. If the rent is $1000 and the late fee $100, when they pay the $1000, $100 goes to the late fee $900 to the rent. Then you can evict for nonpayment. --172.58.xxx.xx |
Collecting late fees? (by Mapleaf18 [NY]) Posted on: Mar 5, 2025 2:27 PM
Message:
Jason, in NY you can put that in your lease all day long but the judges will never enforce it. --67.60.xx.xxx |
Collecting late fees? (by plenty [MO]) Posted on: Mar 5, 2025 8:45 PM
Message:
What Jason wrote is in my leases and judges here are fine with it. Bsman, can you text your tenants? On the day the rent is late text them the rent + late fee = amount due. --172.59.xxx.xxx |
Collecting late fees? (by zero [IN]) Posted on: Mar 6, 2025 8:11 AM
Message:
I am down to one tenant who pays late. I am training her to let me know ahead of time. She realizes she will owe 10% and pays it.
She gets a text that says the rent is late again and that the fees are added to the total. I have considered evicting her because this happens so often.
But she takes really good care of her place, doesn't cause problems with the other tenants and that extra 10% will nearly pay for a night out for me and the boss.
Stop taking mail, it isn't worth it. Get an online pay or have them drop it in a bank or CU account.
Make sure that your lease states what has been written above. Late fees first, then rent.
Train them that they must pay the late fees. Boot them if they won't. --107.147.xx.xx |
Collecting late fees? (by Nana & Papa [IN]) Posted on: Mar 6, 2025 2:48 PM
Message:
Lease states: Money collected goes to late fees, NSF fees, etc. Remainder towards rent. That leaves them late on the rent, and subject to eviction.
Almost all of our tenants now pay on line through BUILDIUM. It tracks it for us. The few that pay via check have to pay us a fee for not using our resident portal. We pay plenty to have the portal, and if we have to go to the POB to collect, bring back to office to account for it in the system, and then go to the Bank, we charge them for it. It's all in the lease they sign. --75.103.xxx.xxx |
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