What is a good late fee charge for tennants?

Question

We own a triplex in central Florida. The rent payment is due on the first of the month. Our tennants always make their payments, but they are always 2 to 4 weeks late. We are thinking about changing the late fee at the next contract renewal. The current contact is $50.00 late fee no matter how late you are. We are thinking to change it to give them a 3 day grace period and starting on the 5th day after the payment is due, charging them $10.00 for every day the payment is late.
Do you think this is fair and legal? Thank you.

Answer 1

Yeah, the way we do it is to have the rent due on the first of each month, and if they get it in after the 3rd it's an initial $25 charge and $10 per day after that.

Answer 2

I charge a flat $100 fee on the 4th (rent due on the first, grace period until the 3rd at 6pm). If rent isn't paid on the 4th I assess the late fee and send a 3 day notice to pay or quit. If payment isn't made on the 9th (allowing 2 days for the weekend) then an additional $250 is charged for legal fees and off they go to the attorney.



I would suggest you charge something like $50 the first day and $10 every day thereafter, but you need to check the laws in that state, because there may be a limit on what you can charge and for how long. That's why my company (one of the largest owners and operators of apartment communities in the country) stopped doing it day by day and went to a flat fee - it's simpler and it fits just about every state, with a few exceptions here and there. Go online and find the section of State Code that deals with Real Estate law and read it carefully, it should be pretty clear.

Answer 3

Raise the rent to include the late fee, and then reward the tenant with a discount for paying on time.



For example, if the going rent is $700/mo, make it $750, and then tell the tenents if they pay on time they get a $50 discount for that month. Try rewarding good behavior instead of punishing bad behavior. Good luck.

Answer 4

In NYC, it was 10% of the monthly rent if it was after the 3rd of the month. Make sure it is stated clearly in the lease so you will have no problem collecting it if it comes to that.

Answer 5

my rental company that i rent from charges me $5.00 a day. but if i notify them that I'm going to be late, they will waive the fee. so yes its legal as long as its in the lease agreement and yes it sounds fair maybe they will stop being late

Answer 6

my lease has a 5 day grace, $37 late then$2 per day.



Check your local laws, they may have some odd formula for calculations....