Comments on: New Late Fee Strategy http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy How to be a successful landlord Wed, 03 Mar 2010 07:15:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: The Importance Of Record Keeping » The Successful Landlord Blog http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41393 The Importance Of Record Keeping » The Successful Landlord Blog Tue, 26 Jan 2010 11:33:16 +0000 http://www.landlord-success.com/?p=809#comment-41393 [...] let’s see what happens when, upon lease renewal, I raise the late fees. I’ve always thought, more so recently, that the tenants have rationalized (and budgeted for) [...] [...] let’s see what happens when, upon lease renewal, I raise the late fees. I’ve always thought, more so recently, that the tenants have rationalized (and budgeted for) [...]

]]> By: TheLandlord http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41364 TheLandlord Sun, 17 Jan 2010 23:43:56 +0000 http://www.landlord-success.com/?p=809#comment-41364 George, Wow! I wholeheartedly agree with raising the late fees but I tend to think that until the "procesing fees" part holds up in court, it might be too much overkill. In my experience, tenants don't read (far less follow) all the fine print. But, good luck anyway. Please let us know how it's working out. George,
Wow! I wholeheartedly agree with raising the late fees but I tend to think that until the “procesing fees” part holds up in court, it might be too much overkill. In my experience, tenants don’t read (far less follow) all the fine print. But, good luck anyway. Please let us know how it’s working out.

]]> By: George C. Torres http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41361 George C. Torres Sun, 17 Jan 2010 01:36:20 +0000 http://www.landlord-success.com/?p=809#comment-41361 All, Here's what I've put in my leases in Texas. I hope it's useful. "Tenant agrees to pay a late charge of $50.00 to Landlord if the rent is not RECEIVED by Landlord the fifth day of the month, plus $10.00 every day after the fifth of the month until the rent is current. It is understood by all parties to this lease that monies paid to Landlord will first be applied to late charges, then outstanding balances, before being applied to newest to oldest rent charges. Cash payments will incur a $10.00 processing fee. Furthermore, an additional $10.00 convenience fee, plus 55 cents per mile round trip from office address to the Tenant’s location, will be charged if the Landlord must undertake a special trip to the Tenant for the sole purpose of collecting rent or partial rent monies, and/or late charge(s) in person." v/r George All,
Here’s what I’ve put in my leases in Texas. I hope it’s useful.
“Tenant agrees to pay a late charge of $50.00 to Landlord if the rent is not RECEIVED by Landlord the fifth day of the month, plus $10.00 every day after the fifth of the month until the rent is current. It is understood by all parties to this lease that monies paid to Landlord will first be applied to late charges, then outstanding balances, before being applied to newest to oldest rent charges. Cash payments will incur a $10.00 processing fee. Furthermore, an additional $10.00 convenience fee, plus 55 cents per mile round trip from office address to the Tenant’s location, will be charged if the Landlord must undertake a special trip to the Tenant for the sole purpose of collecting rent or partial rent monies, and/or late charge(s) in person.”
v/r
George

]]> By: ZenDarb http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41329 ZenDarb Fri, 01 Jan 2010 02:52:46 +0000 http://www.landlord-success.com/?p=809#comment-41329 Hmmm... My leases state that the rent is due on the 1st and is late on the 2nd. There is NO 'grace period.' They have 30 days each month - how much more of a grace period does a tenant need? Hmmm… My leases state that the rent is due on the 1st and is late on the 2nd. There is NO ‘grace period.’

They have 30 days each month – how much more of a grace period does a tenant need?

]]> By: Chris Compton http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41313 Chris Compton Fri, 27 Nov 2009 07:00:14 +0000 http://www.landlord-success.com/?p=809#comment-41313 I manage a number of properties in Georgia. All of my leases require a 10% late fee after the 5th. I have one tenant who consistently pays on the 15th. I think it;s a fair trade off. She's happy, I'm happy and since she is basically paying the entire management fee, the owner is happy. I manage a number of properties in Georgia. All of my leases require a 10% late fee after the 5th. I have one tenant who consistently pays on the 15th. I think it;s a fair trade off. She’s happy, I’m happy and since she is basically paying the entire management fee, the owner is happy.

]]> By: TheLandlord http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41294 TheLandlord Fri, 06 Nov 2009 00:08:30 +0000 http://www.landlord-success.com/?p=809#comment-41294 Hi Justin, To answer your question, in Florida the statute says the following: "If the court as a matter of law finds a rental agreement or any provision of a rental agreement to have been unconscionable at the time it was made, the court may refuse to enforce the rental agreement, enforce the remainder of the rental agreement without the unconscionable provision, or so limit the application of any unconscionable provision as to avoid any unconscionable result." Nice how the term "unconscionable" is not defined in the statute AND notice how the statute gives the court completely unrestrained latitude as to remedy. In effect, you could eliminate most of the landlord/tenant statute and replace it with "...and the court shall deal with it." Hi Justin,
To answer your question, in Florida the statute says the following:

“If the court as a matter of law finds a rental agreement or any provision of a rental agreement to have been unconscionable at the time it was made, the court may refuse to enforce the rental agreement, enforce the remainder of the rental agreement without the unconscionable provision, or so limit the application of any unconscionable provision as to avoid any unconscionable result.”

Nice how the term “unconscionable” is not defined in the statute AND notice how the statute gives the court completely unrestrained latitude as to remedy.

In effect, you could eliminate most of the landlord/tenant statute and replace it with “…and the court shall deal with it.”

]]> By: Sydney http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41293 Sydney Thu, 05 Nov 2009 17:10:33 +0000 http://www.landlord-success.com/?p=809#comment-41293 I had one tenant that for over a year would pay the late fee of $50 almost all the time. I started getting used to the extra money, so during the few rare months when he was on time I was a little disappointed (but not that much). I had other reasons for evicting him, which I eventually did, then had all the extra late fees went into fixing up the mess he left behind. I had one tenant that for over a year would pay the late fee of $50 almost all the time. I started getting used to the extra money, so during the few rare months when he was on time I was a little disappointed (but not that much). I had other reasons for evicting him, which I eventually did, then had all the extra late fees went into fixing up the mess he left behind.

]]> By: Chris Wark http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41292 Chris Wark Wed, 04 Nov 2009 23:11:40 +0000 http://www.landlord-success.com/?p=809#comment-41292 Sneaky indeed. I like it! Sneaky indeed. I like it!

]]> By: Justin Palma http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41291 Justin Palma Wed, 04 Nov 2009 22:02:25 +0000 http://www.landlord-success.com/?p=809#comment-41291 Totally agree! I especially think that the fines per day are much more motivating then a Flat Fine. If the tenant doesn't pay the rent by the 5th, they have no motivation to pay the rent by the 10th, vs "go get drunk" and pay on the 20th as my father says lol. I also am going to start charging $10 if I have to go physically pick up the rent, to help motivate them to buy stamps and mail in rent! Motivation is key! In Florida are the "unconscionable" late fees defined by the State as a percentage of the rent? I feel like I remember reading in NY it's something like up to 10% of the monthly rent... also, if the late fees are much higher then those allowed by the State, I wonder if the Judge will 'ok' the full allowed late fee amount (for example $75 of the $110), or none at all? If it's the former then I say charge away! lol Totally agree! I especially think that the fines per day are much more motivating then a Flat Fine. If the tenant doesn’t pay the rent by the 5th, they have no motivation to pay the rent by the 10th, vs “go get drunk” and pay on the 20th as my father says lol.

I also am going to start charging $10 if I have to go physically pick up the rent, to help motivate them to buy stamps and mail in rent!

Motivation is key!

In Florida are the “unconscionable” late fees defined by the State as a percentage of the rent? I feel like I remember reading in NY it’s something like up to 10% of the monthly rent… also, if the late fees are much higher then those allowed by the State, I wonder if the Judge will ‘ok’ the full allowed late fee amount (for example $75 of the $110), or none at all?

If it’s the former then I say charge away! lol

]]> By: TheLandlord http://www.landlord-success.com/care-and-feeding-of-tenants/new-late-fee-strategy/comment-page-1#comment-41289 TheLandlord Wed, 04 Nov 2009 19:00:36 +0000 http://www.landlord-success.com/?p=809#comment-41289 Hi Chris, I know I need to be careful but this is why my name does not appear anywhere on the site. My picture does (about page) but I think my identity is adequately obscured. Domain is registered private, etc. The "foolish" comment about the judges is that they only follow the state statute when they have no other choice. Even then they are still too lenient with the tenants. They may as well not even have a statute seeing as how the judges apply the law. Hi Chris,
I know I need to be careful but this is why my name does not appear anywhere on the site. My picture does (about page) but I think my identity is adequately obscured. Domain is registered private, etc.

The “foolish” comment about the judges is that they only follow the state statute when they have no other choice. Even then they are still too lenient with the tenants.

They may as well not even have a statute seeing as how the judges apply the law.

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