Partial Rent received. Now it's late. What to charge?

[Megan Arzt]

So my tenants paid $1000 of the $1200 that they own me.  Rent is due on the first, but late fees don't kick in until after the 3rd (on the 4th).  The late fee is $30- day.  Do I charge them the whole late fee or pro-rate it?  Also, do I start the late fee as of the 4th or the 2nd?  I'm lucky in that I really haven't had problems with tenants paying rent before.  Thanks!

Megan

[Kyle J.]

Rent is either paid in full or its not.  Consequently, when I receive a partial rent payment, I charge the full late fee until rent is paid in full.  And late fees usually kick in after the grace period, so on the 4th in your example. 

For what it's worth, your late fee is very high.  Not saying it's wrong or illegal (it could be but I don't know your state's laws well enough to say), but I'll caution you anyway because with a daily late fee that high it wouldn't be too hard for it to get past the point where the tenant can catch up and then you'll likely stop receive rent altogether.  Just something to think about.