Who likes late fees? No one!Tenants don’t want to pay late fees. Even landlords don’t like late fees, as this means they didn’t receive their rent payment on time. Late fees can be substantial. Depending on the state of residence and your lease, tenants may be on the hook for up to 10% of the rent amount.Late fees can be reduced or avoided with simple property management software featuring automated payments, tenant communications, and reminders. 5 Ways to Reduce Late Fees
A Landlord’s View of LateFees Almost every landlord has a late fee in their lease, but different landlords have different views on how late fees should work. On one side, some landlords expect rent to always be paid on the date it is due, and a late fee will apply for all late rent payments. These landlords believe that the best policy is to strictly enforce lease terms, to ensure tenants pay on time and do not get in the habit of always paying late. On the other side, some landlords are flexible, and don’t charge late fees, if the tenant is having problems but is communicating. Their main goal is to receive rent payments, and to keep good relationship with tenants. Which method is right? As in most situations, that typical answer may be somewhere in the middle. Most landlords have a late fee, but they also have a grace period for the late fee. For example, a landlord with a three-day grace period may have rent due on the first day of the month, but won’t charge a late fee if rent is received within three days of the due date. This gives the tenant some flexibility, and ensures the rent is collected timely. When rent is received beyond the grace period, many landlords charge a late fee. Landlords like using rental property software so they don’t have to track when rent is late and remember to add a late fee- this is managed by the software. Landlords also use automated software so they don’t hurt the relationship with the tenant by asking for a late fee directly. Some automated software programs, like ScheduleMyRent, automatically add late fees, but also allow the landlord to easily waive or refund the late fee. Avoid late fees and experience the joy of paying rent online, try Schedule My Rent.
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AuthorSchedule My Rent makes it easy for landlords to collect rent online. The service Archives
May 2018
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