I charge $20 A DAY late for a 3 bdrm at $725.I mean I am a landlord and for me it is all about money.
2006-10-02 03:46:42 · 15 answers · asked by Paul I 4 in Business & Finance ➔ Renting & Real Estate
We charge $75 for the late fee with no exceptions. We have bills to pay also and depend on the rent to pay the mortgage. We pay our bills on time and expect others to do the same. In 4 years we've only had to collect it one time so I guess it's working for us. A daily late fee seems excessive but if they agreed to it it's probably OK.
Of course it's about the money when you buy rental properties so don't feel bad about that. However, the money to be made is on the real estate value and rental income, not the late fees from the delinquent tenants. The late fee should just encourage payment on time.
2006-10-02 04:20:48 · answer #1 · answered by sunnyca 3 · 1⤊ 0⤋
Well, legally I'm sure that's okay, but if someone is paying late I would think they might be having money problems. If this were me, Id accept the late rent and then to spare embarrassment leave in their mail box a reminder letter stating that even though you didn't charge them this time going forward you will have to charge a fee if they continue to pay late. That way your being fair and giving a person a chance to straighten out their finances. Good luck to you
2006-10-02 11:07:29 · answer #2 · answered by Jennifer L 2 · 1⤊ 0⤋
Your rate is probably usurious and would not be upheld in court. Do you have a rental agreement that provides that you will charge $20/day if the rent is late? It does sound as though for you it is all about money. Courts don't necessarily like that. Beware!
2006-10-02 10:51:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Most landlords charge one set rate, our used to be $25.00 before we bought our own. Also $725 for 3 bedrooms that's cheap! Cant get that too many places now.
2006-10-02 11:04:02 · answer #4 · answered by linda m 3 · 0⤊ 0⤋
What does the lease agreement state? If the tenants are aware of your charge and they signed paperwork agreeing to it, then it's in the contract.
If that bit is NOT included in the rental agreement, then before you can charge for late rent, the tenants need to be notified in writing.
2006-10-02 10:55:02 · answer #5 · answered by KB 6 · 0⤊ 0⤋
It depends on your state and your lease. If the tenants sign a lease they agree to what it says and if it says $20 a day for being late then they are responsible for it.
However, we have rental properties and we don't do that. mostly b/c we know people have expenses and lives and sometimes you are going to be a day or two late. We do offer them a discount though for paying it early. That gets us much farther.
2006-10-02 10:55:45 · answer #6 · answered by channielynn 3 · 0⤊ 0⤋
Well it's nice that you admit it's all about the money. I believe it would only be okay for you to charge the late rent if it was in the signed lease.
2006-10-02 10:54:33 · answer #7 · answered by alfirox2 2 · 0⤊ 0⤋
It is ok and legal but if they are good tenants and just having trouble getting the money on time, charging extra isn't going to help because it just puts them further in the hole. If they are just irresponsible, that's another story. 20 dolllars a day is a bit steep.
2006-10-02 10:49:27 · answer #8 · answered by reallyfedup 5 · 0⤊ 0⤋
I never heard of that and it does not sound right to me but then again I guess the law varies in every state. Most leases I have seen - they charge you $50 Bucks once its late and that's it.
2006-10-02 10:48:53 · answer #9 · answered by SxyPR 3 · 0⤊ 0⤋
Reminds me never to rent from you. But in reality, you can do that only if it is already in a rental agreement or contract. If I came upon a rent agreement with such a clause, I would go elsewhere.
2006-10-02 10:56:26 · answer #10 · answered by Anonymous · 0⤊ 0⤋