Late fee question.

[Deb Smith]

when there's a late fee  policy of a % of the rent and a partial payment is made.  Say rent is $1500 and only $1000 is paid.  Is the % on the total rent or just the unpaid amount. 

Ex: say the fee is 10%   Rent is $1500 and tenant only paid $1000

Would it be $150 (the 10% of $1500 rent total  OR....

Would it be $50 ( the 10% of unpaid $500)

[Kelly Page]

Yes, I agree with @Robert Melcher in that the full amount of rent is due on the due date.  For my tenants, the late fee is on the full rental amount even if they've made a partial payment.  Thus, the late fee is the $150 in your example.  

Two spin-off topics:

1.  Although it is quite tempting, I find it best not to accept partial payments as they can back fire in court if you end up attempting to evict the tenant.  In my local area, resets the clock.  I found out the wrong way.  

2.  I charge a flat fee for late charges based on a formula.  The Chicago tenant and landlord ordinance is rather strong and we have a formula we must stick to.  Not sure if all landlords, especially the mom and pop landlords are aware, but there is a limit defined for tenants residing in  Chicago.

Kelly