Late Charges – Maximum of 100% of rent!

A monthly ceiling of 100% of each tenant’s rent is applied to the late fee category. THIS IS THE LAW!  There is no choice on this.

This maximum is reset each month on the anniversary of the tenant’s Paid-to-Date.

For example, if you have a tenant with $50 rent due on March 1st, and you are setup to have a 1st late charge of $20 applied on the 10th of the month, and a daily late charge of $9 each day after that, the tenant will receive charges as follows:

Date                             Late Fees Applied / Total

March 11th:                    $20       Total $20

March 12th:                    $9         Total $29

March 13th:                    $9         Total $38

March 14th:                    $9         Total $47

March 15th:                    $3         Total $50

March 16th – 30th:           $0         Total $50

etc.

Daily late charges will be applied each month starting on the anniversary of the first month’s first Daily Late Charge.  In the example above, the first daily late charge for April will be applied on April 12, and will continue until the total late charge applied in the month of April is $50.

If you use a 2nd and even a 3rd late charge, or even a recurring 1st late notice, the same concept applies – the total late fee within 1 month of the Paid-to-Date cannot exceed the tenant’s monthly rent.

NOTE: This only applies to charges in the “Late” category.  This does not affect other charges such as Pre-Lien or Cut Lock charges.