Late fees not paid (by gevans [SC]) May 6, 2011 5:36 AM|
Late fees not paid (by Virden [OH]) May 6, 2011 5:38 AM
Late fees not paid (by David [FL]) May 6, 2011 6:02 AM
Late fees not paid (by Roy [AL]) May 6, 2011 6:03 AM
Late fees not paid (by in [IN]) May 6, 2011 6:04 AM
Late fees not paid (by billy [MA]) May 6, 2011 6:16 AM
Late fees not paid (by gevans [SC]) May 6, 2011 6:55 AM
Late fees not paid (by Fred [AZ]) May 6, 2011 7:16 AM
Late fees not paid (by John... [MI]) May 6, 2011 7:41 AM
Late fees not paid (by Roy [AL]) May 6, 2011 8:05 AM
Late fees not paid (by gevans [SC]) May 6, 2011 8:15 AM
Late fees not paid (by Roy [AL]) May 6, 2011 8:39 AM
Late fees not paid (by BRAD 20,000 [IN]) May 6, 2011 8:45 AM
Late fees not paid (by gevans [SC]) May 6, 2011 10:19 AM
Late fees not paid (by Tracy [WV]) May 6, 2011 12:53 PM
Late fees not paid (by gevans [SC]) May 6, 2011 2:00 PM
Late fees not paid (by in [IN]) May 6, 2011 2:58 PM
Late fees not paid (by RR78 [VA]) May 6, 2011 7:00 PM
Late fees not paid (by gevans [SC]) May 7, 2011 4:00 AM
Late fees not paid (by LL [AZ]) May 7, 2011 5:20 AM
Late fees not paid (by Nancy [IN]) May 7, 2011 10:33 AM
Late fees not paid (by Josh [CA]) May 13, 2011 1:41 PM
Late fees not paid (by Josh [CA]) May 13, 2011 1:42 PM
Late fees not paid (by gevans [SC]) Posted on: May 6, 2011 5:36 AM
I've had two contractors in a unit for about a year now. Last month they paid on the 8th (Direct deposit to the account), but did not include the $5/day late fee of $15. Second time they've done this. Last time, I caught one of them at home and he handed me the fee in cash.
I'm thinking these guys feel like they can get away without paying the late fees. I don't want to kick em out, but I do want to enforce the lease.
What's my best option? I've already sent them a letter with the lease section cut and pasted. Today's the 6th, so they are one day late this month. They will likely pay today, but maybe not the late fees. --141.129.x.xx
Late fees not paid (by Virden [OH]) Posted on: May 6, 2011 5:38 AM
No pay no stay, this is the penalty for not feeding the rent can, every credit card has late fees with interest too. --99.128.xx.xx
Late fees not paid (by David [FL]) Posted on: May 6, 2011 6:02 AM
Crack that wip and train them. Bad behavior not punished will be repeated. I doubt they will move over late fees, they just need to be educated how to do things properly. --76.106.xxx.xx
Late fees not paid (by Roy [AL]) Posted on: May 6, 2011 6:03 AM
As you probably know, if you don't enforce your own late fees, then you are sending a subliminal message to your tenants that is it okay to pay late. My late fees are $10.00/day and they are intended to get tenant's attention,..and they do. I have several tenants who pay late but they pay all of those hefty late fees.
However, in the early months of a new tenant and the tenant wants to test the LL for limits, this is the best time to stand your ground and demand the late fees or move-out. If a tenant can beat you out of a late fee, then he will challenge you on other issues down the road. --76.18.xxx.xxx
Late fees not paid (by in [IN]) Posted on: May 6, 2011 6:04 AM
If you were a real business you would send them a bill.
Why not send them a bill and a stamped envelope.
Sometimes it pays to ask, kicking then out over $5.00 is a little stupid. --67.163.xx.xxx
Late fees not paid (by billy [MA]) Posted on: May 6, 2011 6:16 AM
i would try hard to not throw them over 6 bucks.it might cost 4 or 5 k to turn over the apt.thats what i figure for my apts.maybe march up there and ring the bell again. --173.14.xxx.xxx
Late fees not paid (by gevans [SC]) Posted on: May 6, 2011 6:55 AM
I'm sure these guys know I will not give them the boot over $20 in late fees. I'd be stupid to do that...
But I'd also be stupid to let them know they can get away with it.
I already sent the bill, 10 days ago. I'll find out today if they paid or not. --141.129.x.xx
Late fees not paid (by Fred [AZ]) Posted on: May 6, 2011 7:16 AM
I give a $100.00. discount if rent is paid on the 25th. my tenant paid on the 26th with the early payment discount taken out. I asked for the $100.00 that she owed and she got very rude and hung up on me. that night I made up an official looking letter "30 Day Notice of Termination".
She called me the next day at 7:30 in the morning and said what's going on. I explained that she did not pay what she owes me so she would have to move. She said can I pay you tonight. I said sure. That was 5 months ago and she continues to pay on the 25th since. It worked because of a combination of mtm and the happy clause. --68.225.xxx.xx
Late fees not paid (by John... [MI]) Posted on: May 6, 2011 7:41 AM
Your lease should state that all monies received are FIRST applied to any late fees, past due rent, and other outstanding debts and only LASTLY applied to the most recent month's rental payment.
The problem is that, right now, both you and them have this idea that they have "paid everything except the late fees" -- they feel that the RENT has been paid.
You need to change that belief (for them and yourself). If your rent is $700 and there is a $30 late fee owed -- and they hand you $700 -- then that means that they paid the $30 late fee plus $670 towards the rent. Therefore, they still owe you $30 worth of RENT for the month.
THAT is the attitude that you have to have with them. Then you send them a standard late notice for not having paid the full amount of the RENT. They will first argue that they paid the entire rent, but then you remind them that their payment was FIRST applied to late fees and then only the remainder went towards the rent. And, therefore, they are still $30 behind on the RENT (NOT on the late fees).
Change your attitude -- change their attitude -- and they'll start to get it.
Late fees not paid (by Roy [AL]) Posted on: May 6, 2011 8:05 AM
I use to have a tenant did not pay late fees. I kept a record of missed late fees and deducted them from his deposit when he left. This idiot racked up over $150.00 in un-paid late fees. --76.18.xxx.xxx
Late fees not paid (by gevans [SC]) Posted on: May 6, 2011 8:15 AM
I'll get the late fees out of the deposit... if they don't trash the place. I want to train them to pay the fees, or even better, pay early.
I also give a discount for early payment, although it is only $25. Coincidentally, I can't charge a late fee until the 6th and that fee is $5/day.
They paid the extra $25, but not the late fee. They are betting I'm not willing to file over $20. They may be correct... but I'm not going to let this pass as I know it will then be repeated every month.
The "fees first, then rent" is a great idea. I will incorporate it into future leases but alas, it is not in theirs. --141.129.x.xx
Late fees not paid (by Roy [AL]) Posted on: May 6, 2011 8:39 AM
As you know, many tenants are like children,..they will test you as to what they can get away. Late fees are a way we "spank our tenants" in hopes of correcting bad behavior. It seems you have a reward for early payment and late fees for late payments,..that is great,..but you have enforce it. Take your belt off and show it to them. LOL. --76.18.xxx.xxx
Late fees not paid (by BRAD 20,000 [IN]) Posted on: May 6, 2011 8:45 AM
Gevans - "payments go to unpaid balance" is basic bookkeeping and standard practice in business. Does not need to be written in the lease.
Be strong! I would not bother the drive to the house to collect, but I would show it on a late notice each week until paid.
Late fees not paid (by gevans [SC]) Posted on: May 6, 2011 10:19 AM
I'll send em a bill today.
With an unpaid balance, I suppose they will continue to incur $5/day late fee? Would this hold up in court? --141.129.x.xx
Late fees not paid (by Tracy [WV]) Posted on: May 6, 2011 12:53 PM
I do not do a late fee. Instead my MTM says rent is to be paid by check and mailed to my P.O. box. Rent is $700 per month but, if post-marked by the last day of the previous month tenant can take a $100 discount and pay $600 instead. I save all envelopes. I tell all tenants at the beginning that this will be enforced. No excuses and no exceptions so please do not ask just pay the rent by the last date of the previous month and take the discount or pay on or after the 1st and pay in full. I don't want your extra $100 I want the rent paid by the last day of the month with the discount. I seems to work. --76.92.xx.xx
Late fees not paid (by gevans [SC]) Posted on: May 6, 2011 2:00 PM
I pulled up in the drive and knocked on the door. They pulled in behind me! No hiding this time.
I asked, "Did you get the letter about the late fees?"
First tenant to second one "did you?"
Second one, "you know I didn't YOU get all the mail."
Second tenant, "how much is it, $20?" as he pulls a $20 from his pocket.
He didn't get the letter, but he magically knew the correct amount.
He was ticked, but even more so when I told him, "next time I have to collect in person, there will be an additional $25 collection fee."
He said, "no problem, you will never have to collect in person again."
We shall see. --216.218.xxx.xxx
Late fees not paid (by in [IN]) Posted on: May 6, 2011 2:58 PM
Our lease call for a $100 discount if the rent is paid on time, and $5.00 a day after 5 days late...
Never ever have I charge it, I have even had some pay me, and returned it.,
Today, had a group move out, one guy was late 6 times, and I wrote the tenants, I got a check for his share of the last months rent plus $600.00 in late fees, his room mates must have beat hard on him...
I told his room mates if he did not pay his rent I would take them all to court,
I would not go to court over his share of the rent, it was only $300, things maybe looking up. --67.163.xx.xxx
Late fees not paid (by RR78 [VA]) Posted on: May 6, 2011 7:00 PM
10% late fee works best.
In thier mind they are just thinking 5 or 10 dollars. Not enough incentive to remember to pay on time.
Hit them with a 10% late fee for even one day late and they tend to remember more, that its worth it to pay on time. --76.104.xxx.xxx
Late fees not paid (by gevans [SC]) Posted on: May 7, 2011 4:00 AM
The problem I have with a set late fee:
once they pass the due date, they think they have all month to pay, with no further penalty. It costs them the same to pay on the 6th or the 30th, so why get in a hurry?
The cumulative $5/day fee seems to work well for me. --216.218.xxx.xxx
Late fees not paid (by LL [AZ]) Posted on: May 7, 2011 5:20 AM
Most courts won't allow punitive late fees. In my states you can only charge a reasonable amount to cover the LL's costs of dealing with late rent.
The way we do it, similar to others is we offer about a 10% discount if paid by the 25th, (which is around $30-50 at our rates) rent is due on the 1st by 5pm and is late thereafter with a $50 charge. On the 2nd (in AZ) they get a 5 day notice and a late payment invoice.
If they still shouldn't pay we sill start eviction. By charging this way we actually get about a 20% "late" fee that will stand up in court. (In theory...) I find I only have to post a unit about once a year and everyone else gets the picture. The key to not having problems is to have a clearly defined policy and follow through according to plan so the tenant knows the policy is not subject to modification. --166.128.xxx.xxx
Late fees not paid (by Nancy [IN]) Posted on: May 7, 2011 10:33 AM
Gevans, your Lease needs to have a provision that applies any received funds to previous financial obligations before rent due and payable. Then he is short on RENT not on late fees.
You should never enter these situations with your tenants. It could be dangerous to you. Simply send written notices. If your Lease were properly drafted, he is now late on rent, not late fees, and you can file for an eviction.
I use the $5 per day as well, though I have never been challenged on it. They have all paid so far except the one guy who lost his job, but he got out.
But what you need to do is have the proper provisions in your Lease.
Here's mine (written by real estate attorney): Owner shall apply all funds received from Tenant first to any non-rent obligations of Tenant, including late charges, returned check charges, charge-backs for repairs, brokerage fees and utilities, and then to rent regardless of any notation on the check or other payment received.
Late fees not paid (by Josh [CA]) Posted on: May 13, 2011 1:41 PM
Rent is not paid in full if late fee is not paid is one way you could play this.
They pay the rent but not the late fees.
You send a letter that until you receive the late fees that rent is not paid in full and will continue to incur a $5 charge per day.
Late fees not paid (by Josh [CA]) Posted on: May 13, 2011 1:42 PM
Have them set up a automatic payment from their bank.