Late fees included in eviction notice?

Question

Somewhat of a follow up to my question last night.

My lease agreements dictate a $20 late fee for rent received after the 5th and then $5 per day for any rent received after the 10th.

I have a couple tenants that are routinely late but always stay current on their rent usually paying by the 15th.  I don't personally have an issue with this as it results in an additional  $45 per month in cash.

The problem arises when a tenant isn't staying current.  I have 1 property with tenants that are chronically late and keep getting later dragging into the next month.  At that point it's like a snowball.

I've somehow managed to avoided having to evict anyone in the 5 years of owning and managing my own rentals.

So say for example it's the 20th and tenant hasn't paid.

I finally decide to send out the 3 day notice.  Do I include the $800 rent + $70 in late fees in the notice?

The reason I ask is because I used the rocket lawyer site for a template on my last 3 day notice and it stated that late fees where not to be included in the notice.

Further complicating things is the fact the late fees change on a daily basis with my current penalty structure.

Jeff B. · Answer

On the Notice of 3-day Pay or Quit, include everything.

On the filing for Unlawful Detainer, I file only the Past Due Rents - - but don't expect to collect.  With the UD action, the ploy is to gain possession, not rents as with possession I can cleanup and get it rerented ASAP.

To get Past Due rents and fees, file in Small Claims- - again, don't expect to collect as they will have nothing to attach - - so write it off as Bad Debt.

Rich N. · Answer

@Ed Lee

Yes - its better to include the fees and have the judge deny it than not ask and not get awarded it.

1. In regards to the one that is really habitually late, I would not re-new their lease.  You may lose a month rent, but I do not tolerate habitually late tenants.

2. IMO - late fee or not, the monthly rent should never roll into the next month.

3. Thought- why do you wait on the notice?  I wouldn't go more than 7-10 days without serving it. This way, they can cure it and pay the late fee by whatever day like the 15th.

Deanna McCormick · Answer

You need to check your state landlord tenant laws as see what the maximum amount is that you can charge for a late fee is.. and what day the state considers a late fee applicable.

How your lease is written for this may not mater if your not in compliance with state laws.

Yes you "include late fee in eviction notice and on court paperwork. but it's listed just as that XXX late fee.

Better to have a stiff fee set fee than a extra daily amount, if rents aren't in by the  6th or 7th then you decide to file.

Usually the judge will cancel a late fee in eviction actions and side with the tenant for only rent due. I included the late fee on the complaint but will agree to have the fee removed if the judge questions it.

Reaz H. · Answer

Yes, I have had to put up a notice within a month of acquiring my first MFH. I included the late fee but NC does not allow daily late fees so it was simpler. However, I did include the late fee because it becomes due on the 5th day after rent is due. Also there is no point waiting beyond the 5th day to put up a notice. The tenants can always pay rent at any time and you can cancel the eviction process. NC has a 10 day notice and a 5 day minimum grace period for rent. So on day 6 I would put up the notice and just wait for the tenant to react.

Also if your tenant makes a habit of being late, you might want to consider becoming firm on the rules or get better tenants. Also do not let the late rent go more than 2 weeks because the entire eviction process can take a month or so and the earlier you start, the less time they have to do some serious damage.

Kelly N. · Answer

When I have to send out a pay or quit notice, I include the late fee.  We have a $25 fee for rent not received on the 5th, and $5/day after that.  I send notices out on the 6th that include the $25, and IF we get to court (generally 2 weeks or so later) I would have a statement ready with the additional $5/day up to that point plus the court charges.  The only time it has gone that far, the judge ruled in my favor for the total that I stated, but it may be handled differently in your state.

Wade Sikkink · Answer

I have always included the late fees in a 3 day pay or quit notice.  The form my attorney provided has a space for it, so apparently that's ok here in Nebraska.  However, every state is different so check with your attorney.

Kim Meredith Hampton · Answer

@Ed Lee as a side note, I call my late fee "late rent" in my lease agreements. Some judges go for it because its additional rent in lieu of "fees". Some judges will throw them out all together, just dependents on who you get and how your landlord tenant laws are worded.

Late fees included in eviction notice?

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