Stessa offers a fixed late fee or a percentage of rent late fee. It’s customary in our neck of the woods to charge a late fee based on the number of days late. For example, if the tenant pays their rent on the 10th, there are 10 days late (due on the 1st with 5 days grace), and the charge is $5 per day ($50). I have a maximum late fee of 1 month (28, 29, 30, or 31 * 5, depending on number of days in the month). Is this idiotic? Anyway, that’s the way my MTM tenancies are set up. I’d love to see this as an added option to your software, or is there a workaround other than tracking late fees manually?
This is apropos the wish Incremental / daily late fee charge and collection
I’d like to ask for enhancement to the late fee functionality. Specifically, allow some common rules for late fees, e.g.:
- add fixed amount daily for each day rent is overdue
- allow a different amount on the first day after grace period, e.g. $25 on the 6th day (5-day grace period) and $5 every day thereafter.
- allow to specify how the received rent payment is automatically applied, i.e., first to late fees that then to rent or vice-a-versa, etc.
- when rent payment is entered in the transactions, “backtrack” late fees based on the date of the transaction.
My wish is to have percentage late fees for multiple days. On the 4th I want to change 5% late fee and then for the next 5 or 7 depending upon the property I would like to charge 1% of rent as a daily late fee.
It is standard in Texas as part of TREC, the late charge on 1st day is different from the rest of the days. Currently there is only one late fee amount that we can enter.
In the “Edit Rent” screen, I would like to request you to add one more field for Initial Late charge for 1st day the rent is late and change the late fee calculation to
Initial Late charge + daily late charge * # of days late after the grace period.
e.g., Late fee for 1st day ($50) initial late charge and is different ($20) amount for subsequent days.
Thank you very much.
I can really use this feature also. All of my property late fees are based on days late and not a fixed if late regardless of how long. I charge $20 per day late with no grace period.
For those reading wondering why I use this formula:
I have found the grace period to be regularly abused and essentially extends the due date. If rent is due on the 1st of the month and there is a 5 day grace period, many tenants never pay prior to the 5th of the month. Also, I have daily late fees accumulate to encourage the tenant to pay ASAP. With a fixed fee, they have no motivation to pay until the end of the month and then they have trouble paying the next month’s rent. Basically a snowballing issue.
I would love to see this as well. (in fact joined the forum just to request this)
I use a 5 days grace (helpful when paychecks don’t EXACTLY align) then $10 for every day after that. If payment is 14 days late from the due date (1st of the month), then the late fee would be $90.
Would indeed be nice to have a flexible way of charging the tenants, in my case, one of my PM’s use a mix between % and $: a percentage of the rent due AND a fix amount per day late.