Late fee calculation

[Sam Va]

Dear Experts - My tenant paid her rent 15 days late. According to the agreement, she is also supposed to pay a penalty of $200 ($50 fine + $150 for $10 per day). However, she has not paid this additional $200 by the next rent due date. Given this scenario, how do we calculate the penalties, and how much does she need to pay in penalties by the next rent due date? Thank You!

[Tim Baldwin]

Courts in Florida have held that compounding late fees are unconscionable or excessive. You should consult with a landlord attorney in your state to get solid legal advice on this issue.

[Sam Va]

Thanks! This is about Texas.

Regards!!

[Bill B.]

Check and make sure your late fees ar within guidelines for your city/state. 

If so. Deduct your late fees from the amount paid the following month. That will show the following months’ rent hasn’t been paid in full. You can then ask for the rest of the following month’s rent to avoid eviction. (That is how far you have to be willing to go. Otherwise you just have to carry the late fees as a balance due until they move out if you’d prefer they stayed.)