Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

592
Posts
138
Votes
Kyle Meyers
  • Residential Landlord
  • Indianapolis, IN
138
Votes |
592
Posts

Grace Periods and Late Fees

Kyle Meyers
  • Residential Landlord
  • Indianapolis, IN
Posted

I am dealing with my first late payment and I'm not quite sure how to handle it. The rent was due today, but I have not received it or heard from the tenant. I am going to call them tomorrow to see what is going on, but I wanted to make sure I know how everything works.

I am especially curious about the grace period. I have a 5 day grace period and a $5 per day late fee. So, if they pay on the 6th their would not be a late charge, but if they pay on the 7th would the charge be $5 or $30? Do I count the days that are part of the grace period since that is still how many days they are late?

This is their first rent payment since they moved in partway through March, and I am hoping they were just confused about something, but I want to be prepared for what my steps will be. Also, since they paid the first month rent up front, could they actually get away with delaying their payment until later in the month?

My lease states: "If the rent or any other charges are not received by the Landlord on or before 5 days after the rent due date, Tenant must pay a late fee of $5 per day the rent is late in addition to the rent."

Thanks for the help.

Most Popular Reply

User Stats

1,312
Posts
671
Votes
Jeffrey K.
  • Real Estate Investor
  • Milwaukee, WI
671
Votes |
1,312
Posts
Jeffrey K.
  • Real Estate Investor
  • Milwaukee, WI
Replied

In the future you should give them 12 preaddressed envelopes to send in their rent. When doing a move-in you should also tell them how the rent will be collected.

Loading replies...