December 8, 2008,
Posted in Landlord Basics Comments:
(This post is part of our “Landlord Basics” series, which seeks to help the new landlord / investor understand some of the basics of tenant relations and property management. Click here to view the entire Landlord Basics archive.)
In a perfect world, every tenant pays their rent on time every month. However, the last time I checked, we don’t live in a perfect world. Assessing a late fee shows your tenants that you are serious about the rent being in on time, every month. Please keep in mind that the laws regarding charging late fees vary from state to state and in some cases city to city, so you will want to check with your local board of Realtors or lawyer to see how the laws affect you.
If you intend to charge late fees, they need to be addressed to the tenant in the lease. At the lease signing, be sure to explain to the tenants that a late fee will be assessed if their rent is late, and that the late fee and rent must BOTH be paid in full.
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