Rent grace period questions

[Adam Beckstetdt]

I am about 1 year into landlording my own properties and have a few questions on lease grace periods and what others have done. We have rent due on the 1st and then a grace period till when the late fees hit so some tenants view it as due the day before late fees apply. Late fees apply on the 7th so they pay from the 1st to the 6th. This creates alot of undue contact and driving on our part since we dont have all online payments. 

Im wondering what others do for late fees. Do you set them up to start the 2nd? Or do I use this as a sign to replace the tenant. Or is this just something we all deal with. We are typically lenient on 1-2 offenses of late but it is habitual at this point and they have stated that they feel if its before the 7th then they are good because the lease doesn't impose fees till then.

My idea for a solution was to send a letter of options for the offenders. Either increase rent $25 a month and leave them the "option" to pay 1st to the 6th. Or a lease amendment that states late fees start on the 2nd and no rent changes.

Thanks for your time