What kind of late fee do you charge?

[Nathan Gesner]

What kind of late fee do you charge, and why?

• One-time charge of $XXX
• Small fee that starts on Day X and continues to accrue daily until Tenant pays in full
• Combination of a one-time charge and then a smaller daily fee

What made you choose the method you currently use? Share your pros and cons!

Any ideas for how to make a late fee system more effective?

[Vincent Gable]

i charge $25 a day after the 3rd of the month. while it may seem high its a good deterant to people who would try to pay late. i had guy just this month say he was gonna be a week late. i tell him thanks for communicating but we dont take partial payments and i explain the late fee again. he called back and tried to give 500 for his late fees. i told him if he couldnt figure it out his 600 rent could end up being 1250 for that month. the next day he payed off his late rent which ended up being 950. 

you have to be fair but firm. i explain the late fee before i let them sign the lease and AGAIN if they want to pay late. people are not upset when they are charged a fee, they are upset when they dont know WHY they are paying a fee. just be upfront and fair; it has worked for me and i get the feeling he wont be late any more.