No grace period for rent payment?

Question

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?

Robert Fornwalt · Answer

I give a discount. example rent is $950 due on the first. if paid on the 1st I discount $50 to $900if paid after the 1st its $950. no late fees or grace period.why because if rent is due on the first and you have a 5 day grace period then rent is really due on the 6th. and that's when they will pay.my 2 cents

Thomas S. · Answer

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.

Thomas S. · Answer

Grace periods simply send the message to tenants that the rent is not due on the 1st it is due the day before fees go into effect. Grace periods guarantee tenants will pay late. The way to train tenants not to pay late is to always issue the pay or quit notice on the 2nd, the day after rent is due, and educate them on the fact that next time the pay or quit notice will result in eviction.

Justin Juhan · Answer

State Specific, In Ga we don't have a mandatory grace period. Rent is due on the 1st by 11:59pm as spelled out in the lease.

Kenneth Garrett · Answer

The first step is to follow your state law. If there is no provision or restriction then it’s up to you. Typically a grace period is given, but there is no mandate. I charge 5% of the monthly rent after the 5th of the month. I charge an additional 5% if not received by the 20th of the month. My mortgage payment is still due irregardless of whether I receive rent or not.Good Luck.

Marc Winter · Answer

All you can do with late fees is (once you know you are legal) enforce them equally across the board. Let the tenant know the rules at lease up, and remind them of the consequences if they are late. You may also consider charging them for your preparing legal notice to quit and court costs for eviction.The best course of action is to make sure the manager establishes a fair but firm relationship with each tenant at signing time and be consistent throughout the tenancy. Screening beats evicting.

Rachel Jacobson · Answer

Follow your state laws on grace periods and late fees. Some states have no required grace period, and you can begin charging late fees right away. Others have a mandatory grace period. Whatever your policy, being consistent about enforcing your late fees and due dates will encourage tenants to pay on time.

Theresa Harris · Answer

If they don't like the daily late fee, bump it up to a larger amount due X days after the 1st. So they don't like $10/day, fine they can pay $50 if it is 4 days late. Most of mine pay on time (ie the 1st) and on the rare occasion that they don't, they let me know ahead of time and it is paid within 1-2 days. I also don't get them to mail their rent to me every month, I get a series of post dated cheques or they pay with an electronic money transfer on the 1st.

Wesley W. · Answer

Tell them the rent is due on the 27th and you'll give them a grace period to the 1st. ;)It's really up to you. I offer a 5 day grace period but then a stiff penalty for paying after 5pm on the 5th ($50). It's not "unheard of" - there are people on BP that do not offer any grace period. It's your business, so it's up to do what you want to do. I certainly would not make any changes to my business just because a tenant disapproved of it.

Alex S. · Answer

I usually have 5 days grace after late fee.