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For the first time, we have a tenant that is late by more than 5 days (yes, we've been lucky). In our lease riders, we have a one time late penalty fee of $75 if rent is late beyond 5 days. This is for units where rent is between $2,800 - $3,600/month. I know some owners who charge a % of the monthly rent for everyday a tenant is late beyond the grace period.
What do you charge?
Thanks in advance for any input.
I see someone has responded, but for some reason, I can't see the garbage she has written.
Must be a SE glitch, I see more replies, but I still can't see what she's saying. Weird...
Hey Vincent, how are you?
I agree with huntersburg, forget a late charge. As long as you are getting the rent by the 10th of the month, I wouldn't bug the tenant with a late charge which he probably won't pay. If it gets later than that, speak to the tenant and remind them that the rent is due on the first of the month. If it continues to be late and it bugs you enough, don't renew their lease when it comes due. Theses days if the tenant pays the rent at all your a lucky guy.
Oh, now see the comment. Must be because huntersburg wrote something without being an ______. I'm fine. How are you? Do you know me?
Thanks for your input.
This is a special situation, normally we don't charge a fee, but business is business and guarantors are in place. I don't like dealing with "kids" when it comes to our rental income. They gave us basically the equivalent excuse of "The dog ate my homework".
If you are not shocked by fowl language - hit 'unhide' and you will see the comments. We rented to folks for several years and never charged 'late fees.' If the rent was more than 20 days late, I would e-mail or call %u2013 I had a tenant who was always late which was a bummer, but late fees? Nah... For $75 would you risk damages well above the deposit? Also, we just had a busy 3 day weekend, so between fun in the sun and two days without mail service could be 'check's in the mail.' Also, I recently asked my lawyer about a 'renting issue' & he shared with me a horror story that would make 'landlords' think twice before pissing off tenants. Would prefer not to share details on a public forum. Try to be patient and Good luck!
Listen folks, we've been owners for over 30 years, very careful about LL/Tenant relationships and have been lucky. We get along with all of our tenants because we screen each app thoroughly. This is the first instance so I was just curious what other owners did.
Thanks again for all the input.
PS: Foo - At my age, I don't bother with the nonsense online. If I was to engage all the stupid posters, on SE or other forums, I would be the idiot. Better just to ignore.
panic! after 30 years of being a landlord, 6 days late into September after a long weekend, and the OP is in full panic what do I do mode, throwing away 30 years of logic and experience. What an idiot.
You need to go through the warning process first. You think charging them $75 will get them in line for future months but the risk is alienating them and giving them a sense of injustice. If you warn that the next time is a fine, the chance is much greater they will accept it (if it happens) which is dramatically less risk for you.
OMG, how can I pay the mortgage on my overleveraged properties without the $75 late charges?
@vslse65 I do not at this point understand your concern. If anything let half a month pass before you panic and charge a late fee if even at that point. How long have you had this tenant? Is it possible they went away for the long weekend and did not put a check in the mail before they left?
Are you that hard up on money that you would want to even charge the fee the first time they are late according to the lease.
Remember goodwill goes both ways and a one time late payment fee being waived goes a long way in your landlord/tenant relationship, especially if you have something so insane as 5 days. My bank gives me a great time period to pay my monthly payment.
I even convinced a garage to waive a late fee once based on my payment history and an issue with us being away that one month.
Also did you say it is only allowed to be charged once in the lease period? If so you charge it to me and I would pay you late for the remainder of the lease out of spite for not having the courtesy of a few more days.
30 years as a landlord and he is frothing at the mouth, less than 3 hours of daylight since that precious 5th day late became official.
crescent22 - Thanks for your input.
Mikev - Amazing how you know our situation better than us. "Hard up on money"? Give me a break and save the lectures about life. How long have you been a landlord? If more than 30 years, I'll give you some credit regardless of your comments. You went away for a month? Then why didn't you pay up front knowing you were going to be away? Pay your bills on time and you wouldn't have to "convince" any of your creditors.
A SIMPLE question turns into this? No wonder I don't post here much.
Thanks again to those who actually commented constructively without ASSuming stuff they have no clue about.
It was the end of the summer, people vacation and travel doesn't necessarily lend itself to bill-paying ... and mail doesn't move on Labor Day.
@crescent22 - guess I was wrong about you too. Have a nice day folks.
I wonder if vslse65 has received a bailout from the government like Citigroup. Because his landlord operation is like my Citibank Mastercard. Paying on time isn't profitable, but late payment fees, rack up those $75 penalties to buy out the government's stake so that bonuses can be paid. FLMAOZ.
@alanhart - thanks for the comment.
I'm not about to write a novel about the situation. But all the constructive comments were appreciated. So JUST for those people, I will say this this much. All of your points are of course valid but not relevant here (ie: Labor Day weekend, vacationing, long time tenant with good payment history etc...)
This was a SIMPLE QUESTION of what other owners charge (if anything) for late fees. But I see this was mostly a waste of time. So thanks again to those who actually gave some constructive input.
Have a great day folks.
Sorry should have followed with been a landlord for 8 years, sorry not 30. Never charged a late fee as crap happens and sometimes people are just a few days late.
Not a lecture on life you basically came on here asking now that it is September 6 and there was no mail on Monday, whether or not you should charge a late fee. I have no idea what you were expecting.
I was making a point that sometimes things happen and I forgot to leave prior to going since a check just got handed to the garage person. And maybe you are the one person in the world who has never been a day late on a bill, however I am sure the majority have asked for a favor regarding late payment based on past history.
I hope you get your $75 and you buy something nice with that.
To answer your question: My leases say rent is due by the 5th. $50 late penalty then $5 a day after.
What is charged when and or collected is a different conversation.
My skin is thicker than an elephant, but what PISSES me off is when people online think they're Mr./Mrs. "know it all". When someone asks a question, why is it so damn hard to just reply without tooting their single digit IQ horn and assuming sh*t?
"I have no idea what you were expecting." - How about "I don't charge a fee", or "I charge X% of monthly rent" or something like that?
"I hope you get your $75 and you buy something nice with that" - Yeah, I'll pay your damn garage bill.
Whatever, rant over....have a nice freakin' day. I'm too old for this crap.
MAV - thx, you always were a straight shooter here and enjoy reading your posts sir.
Wow, Ive never seem someone melt down so quickly over $75.
I feel sorry for the tenants.
vse, I've been a landlady for 10 years. I would call the tenants immediately and start a conversation about WHY the rent is late. In my experience that will divide into two camps: responsible people who are really embarrassed (sometimes it's a simple as "I thought my husband paid it") and will pay up immediately, and self-absorbed people who are having cash-flow problems. If it's the latter, as RENY notes, you probably shouldn't renew them.
In either case, I probably wouldn't charge a fee, regardless of whether I had a contractual right to.
DG Neary Realty
Not a know it all. You seem to have issues because you asked a ridiculous question and most here have answered the same way which is it is the SIXTH day of the month and you want to know what to do. The question does not even make sense if you have been a landlord for 30 years as you at this point in your life should know the answer to the question.
But Ali who is always reasonable, I guess unlike me, just gave you the best response you will probably get.
I am not sure what was assumed, you came on here concerned over what to do and instead of saying you had a late tenant you told us that it is day 6 and you have not received. I mean seriously I am sorry if it hurt you that no one on here really understands your question.
But to answer your question I give people to the 15th, because sometimes things do happen when you mean to mail the check.
As huntersberg very astutely points out, FLMAOZ.
Hey, vselsey, hurry up, the mail's going out soon.
Help, my MetroCard doesn't work on the first swipe. Should I sue the Governor, deduct from my next tax return, or punch the clerk?
I thought legally you can't charge late fees for housing payments until the 15th.
ali - Thank you.
Mikev - "But to answer your question I give people to the 15th" - was that so hard?
As for the rest of the comments, all I see are greyed out names.
Hey, I'm pretty sure it took me at least 10,000 comments to earn my grey status. That was a lot of work, don't denigrate such efforts.
What did vslse65 say? I have him on ignore.
Don't charge a late fee, remind them of when the rent is due and ask if there was a special situation, and then when the lease is approaching renewal re-evaluate the lease(you may want a new tenant). But if this is a one off and its not likely to occur again, don't tick off the renter.
Listen to Riversider, he said what I said but he didnt curse and he's not grey.
I charge 5% of the rent - grace period per the lease is the 10th - grace period per our company policy is the 15th. 1st late fee is always waved proactively by us (that is we call them and say that as long as next month's rent is paid on time we will wave this month's fee).
So refreshing to hear an answer in 2 sentences without a lecture based on wrong assumptions.
For that, I thank you.
You need refreshment if you panic after 6 days and need $75 to pay off your mortgage. Jazzman did better than lecturing you.
shut up already. you are ridiculous. stop it.
Poor poor columbiacounty
you are pathetic.
What's the matter columbiacounty?
poor poor columbiacounty
Wrong assumptions? Like legality?
Believe me, if citibank and Peter cooper were allowed to charge late fees before the 15th, they'd fucking do it.
I wonder if vslse65 uses JimHones/columbiacounty as the broker for his properties?
I would increase the $75 late penalty $1 for each day it's late. If you need to mail a notice every day, make it $1.45 increase per day.