Built-in Late Fees as Part of an Illinois Lease

[Shannon Gauthier]

I own one property in the state of Illinois, a single-family home currently being rented. When our tenants renewed their lease, they were having financial issues and, having been there ourselves, we were sympathetic.  When they asked if they could pay their rent in installments, we agreed, but since they were not paying in full on the due date, we would include the late fee into their payment schedule. Now, they are behind and we are perusing payment. 

Our tenant stated they spoke to an attorney who told them that they did not have to pay the late fee, just the rent according to the schedule. Although the lease states a specific date that the rent must be paid prior to a late fee and we agreed to allow installments only if they included the late fee, they state that they do mot have to pay that fee. 

Yes, we made a stupid decision. Lesson learned. Does anyone have a story they can share, or let us know if the built-in late fee portion was not allowed in Illinois? We researched before allowing this, and didn't see where it was prohibited, but perhaps we missed something.

Thank you all!

[James Syed]

@Shannon Gauthier

Welcome to BP. 

Your tenants are correct unfortunately. You can't force the tenants to pay late fees during 5 day process. It would have to be separate motion. Judge will throw any late fees, NSF and other fees during eviction process. 

I had just sent a colleague request to you. You are welcome to contact / call me. 

Good luck.