Late rent deterrent?

[Sam Leon]

Just wanted to brain storm a deterrent for paying rent late. I know we all have to deal with this from time to time.

Some charge a fixed late fee after a grace period; Some charge a per day late fee;

How about a rent increase if rent is habitually late?

Let's say the monthly rent is $1200, if 3 days past due date you charge a $50 late fee.

What if the lease says rent is $1200, if 3 days past due date you charge a $50 late fee. If you are late three times, from that month forward the rent is automatically adjusted to $1250 per month, and the late fee still applies.

Would this be kosher if included into a lease?

Is it a stupid idea?

[Chris K.]

This is one of the reasons I've recently started doing Month to Month leases. It allows me to do this with a 60 day notice. I even tell them when we sign the lease that if they pay on time I won't increase the rent.