How to ask tenant for late fee?

[Pat Martin]

How should I let me tenant know that they owe me a late fee? I am on a texting basis with all of my tenants but should I send them a letter? What happens if they don't pay it but continue to pay rent going forward? Thanks for the advice.

[Bill S.]

@Pat Martin - first off you don't "ask for" a late fee. When they don't pay on time you text them the amount due (if you have a one time late fee) or the amount due that day with a note that the amount is increasing $XX per day.

After the fact (meaning they paid but without late fees) I would text them and let them know rent is short by $XXX and that payment is due by 5pm today to avoid additional costs and potentially eviction. If they don't pay up or communicate and pay up you post notice to begin eviction according to your local laws.

The landlord is in charge. The tenant is not.

Your lease should have something in it stating that funds received are first applied to outstanding funds owed (in this case late fees).

You might consider changing the method of rent collection. I would recommend an ACH service. If the money's there great. If not, it's crystal clear they are late.