No grace period for rent payment?

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Our rental contract specified a daily late fee if the rent is made after due day. My tenant complained that’s unheard of and “no room to breathe”. What are you guys’ thoughts on this?

[Thomas S.]

It will depend on your state landlord tenant codes regarding late fees. It is not up to the landlord to set time lines if they are specified in your state regulations. If there are no rules in the codes you can do as you choose however a lease can not over rule codes. The only way to properly operate the business is to have zero tolerance when it comes to rent payments. Far too many lazy landlords actually train there tenants to pay late through collection of late fees.  Make your late fee as high as you can legally, you want it to be painful. Mine is $190 the day after rent is due. It is extremely rare that I have a tenant pay late.

Tell your tenant that he is correct, "there is no room to breath" when it comes to rent payment. Make it crystal clear that the late payment will only happen once. A second late and you will terminate the tenant. Rent is due when it is due, your priority is collecting rent on time not collecting late fees.

This tenant sounds like he is not going to work out if he "expects" to pay rent when he chooses.