Understanding your rights as a landlord is important. In order to run your properties in a fair and efficient way that is also profitable, you need to know when you have to take action against tenants. When renters are consistently late with paying their rent, it can cause you financial disruptions. Of course, you may have your reasons for avoiding this fee or are unsure how much of a late fee can a landlord charge.
Reasons to Charge a Fee
As seen on www.rentrescue.com, charging a late fee helps you set the right precedent. Allowing your renters to be late without consequence means they might feel like they can do it again. Other benefits to charging a fee include:
Reduce cash flow interruptions
Hold tenants accountable
Follow standard landlord protocol
The amount you charge will depend on a few different factors. For one, you want to make sure the fee makes sense for the rent you normally charge. If the rent is low, you don’t want to hit your tenant with a penalty that will cost them a small fortune. You may also want to offer a small grace period of a day or so to your tenants as a sign of good faith before charging the fee.
There are many reasons to consider charging a late fee. Understanding the facts can help you make the right choice.