" LATE FEES " ??????

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Hey bp,ers

  My question is what is the going fair rate for late rent fee ?  

[John Stovall]

We just have a 10% penalty in our lease. Based on the other replies, I think I am going to change it to something like the $25 + $3 per day.

This is why these forums are good. I haven't really thought about it too much.  I often waive fees if the tenant calls or writes me to let me know it will be a day or two late or something.

I also have a conversation when signing the lease about this. I explain that the bank does not allow us to be late with our mortgage payments, and if the tenant is late, it causes problems for everyone. I also have a friend who rents who has no late penalty, and instead tells tenants, "There will be no late rent paid." He then explains that if rent is late, he needs to find another tenant. He must explain it well because he has about 15 units without anyone paying late. Let me add that he is a fanatic about maintenance, etc, and his units are very desirable.