What is your late fee policy?

[Chris Harn]

Our current late fee is a flat $25 if not paid by the 5 day grace period. In the past I have not had issues but my current tenant seems content to take the late charge and wait to pay rent until I post a 3 day notice. The lease is up next month and I would like to make changes to the late fee policy on the next contract.

What is your policy on late fees, and is there a better way I can handle this situation to avoid this moving forward?