Fee for late rent

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How soon do you guys start charging a late fee for late rent? I used a standard lease form that my agent provided and it says rent due on the 1st of each month. Then 3% late fee if more than 10 days late. Is that standard? My tenant has never paid on the first other than when he provided a couple of future dated cheques and I deposited on the first. He always pays, but it takes tons of reminders and it's closer to the 10th than the 1st. Just wondering how you guys handle.

[Andrew Syrios]

Our late fee kicks in on the 5th of the month, which is pretty standard from what I've seen. Basically, rent is due on the 1st and you have a four day grace period and then it's late on the 5th (unless it arrived by mail and was postmarked on the 4th or earlier). Sometimes we'll make exceptions when the 4th falls on a holiday, but that's about it. Our old policy was a $50 late fee. We later changed it to 10% of the rent. 

Whatever your late fee is, you always need to charge it. Don't waive it unless it's a really, really good reason. If you don't enforce the rules, tenants won't abide by them.