Let the tenant know that as rent is now late, you will expect the $50 late fee to be paid with rent.
as a tenant in an apartment I would be extremely annoyed if I was charged a late fee on the first offense and it would be fought. It would definitely be on my mind when I come up for renewal.
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If I actually got charged a late fee I would definitely up the requests for ticky tack stuff.
Let the tenant know that as rent is now late, you will expect the $50 late fee to be paid with rent.
+1.
If you would like, granting a one time exception is fine too. Especially if they've been there awhile and never paid late. Since it's a student, I assume since September? I would probably do a one-time waiver, here.
I typically grant a one time waiving if they've been there awhile, but I also make it clear it's a one-time thing, and specifically say "the next time it's late, you will need to pay the late fee, which is___ and due if the rent is received after the ___, per the lease".
Whether you waive it, or not, clear communication about expectations is key.as a tenant in an apartment I would be extremely annoyed if I was charged a late fee on the first offense and it would be fought. It would definitely be on my mind when I come up for renewal.
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If I actually got charged a late fee I would definitely up the requests for ticky tack stuff.
What if it took two more weeks for her loan thing to clear, so you were paying 3 weeks late? Would you still fight it?
What other parts of the lease would you feel fine violating, and then fighting when the landlord wants you to follow the lease?
I'm guessing the landlord, with this type of attitude, might be okay with you not renewing (or might not even give you the option to renew).
Another legal issue to research here would be whether the $50 late fee is enforceable. In general, penalties in a contract are not enforceable. Under the law of South Carolina (as elsewhere), "[t]he test for determining whether a stipulation constitutes a penalty is whether the sum stipulated is so large that it is plainly disproportionate to any probable damage resulting from breach of the contract". Moser v. Gosnell, 334 SC 425 (https://scholar.google.com/scholar_case?case=538397204336473509), 431-32 (Ct App 1999) (citation and internal quotation marks omitted). There is no South Carolina case law specifically addressing what kind of residential late fees are enforceable, but such case law exists in various other states. See, e.g., Biggio v. Puche, 2013 NY Slip Op 31919 (https://scholar.google.com/scholar_case?case=7375521180985367709) (NY Supreme Ct 2013) (flat $150 late fee was unenforceable penalty); Spring Valley Gardens Associates v. Earle, 112 Misc 2d 786 (https://scholar.google.com/scholar_case?case=14746596091749352985), 787 (NY County Ct 1982) (flat $50 late fee was unenforceable penalty). But see, e.g., Buchanan v. Kettner, 984 P 2d 1047 (https://scholar.google.com/scholar_case?case=16374660267980106982) (WA Ct App 1999) ($2 per day late fee was enforceable liquidated damages provision and not a penalty).
Please note that I express no view on the specific circumstances of the original poster. I offer no view on whether the particular late fee proposed by the original post is or is not enforceable. This post is not, and does not purport to be, a comprehensive review of all the law relating to late fees. I've merely identified an issue here that requires further research. I have not actually completed that research. The application of the law will also depend on all of the facts, including the exact wording of any written agreements. The law is different in every jurisdiction. Readers should verify any assertions contained in this post, and in all of my posts, using independent research. The expectation is that readers will conduct their own research and not rely on the contents of this post or of any of my posts.
She likely had little to no control over when her loan payment came in. My law school screwed up my entire class' loans one year and due to their error, I got the money over a month after the school was supposed to disperse it. She should have reached out to you. However, if I were in your shoes I'd wait to get the payment and then say that you are waiving the late fee this one time because of her prior on time payments and because she said the late payment was due to a disbursement issue. But, this is her one and only warning and the next late payment you will have to charge a late fee.
Also, re: the deposit, check your local laws. In my state you can't use a deposit for unpaid rent or late fees; actual damage only.
as a tenant in an apartment I would be extremely annoyed if I was charged a late fee on the first offense and it would be fought. It would definitely be on my mind when I come up for renewal. Right now my late fee is $250 and they force us to pay by check so it's a pain to remember every month.If remembering to pay rent is a problem, you may want to consider using an automated bill pay system from your bank or credit union.
Every other place I've rented has waived the first late fee occurrence as a courtesy and these have all been established businesses with 50 - 500 units. I don't think it will cause you problems, rather it will buy you some slack on maintenance requests if you adopt this as an internal policy. If I actually got charged a late fee I would definitely up the requests for ticky tack stuff.
have to laugh when I read this. Makes me wonder if you do this a slight joke or are you actually concerned someone could sue for misinformation about $50...
I have a 5 day grace period. With one particular tenant the payment was often sent on Day 4 or 5, then it became day 7, day 8.
At first I was a little too lax on enforcing, but then I printed vouchers for each monthly payment and sent them to him at the start of the year.
Printed on the voucher says (for example) $1000 Due Jan 1, 2016. After Jan. 5th, $1030 Due (late fee). Then I had a very brief conversation with the tenant and said "I don't want to charge you late fees, it's not my goal, I want you to pay your rent on time and avoid paying the late fee."
It seems to have helped. Now with every payment, he mails in the voucher. And if it's late, includes the late payment fee...
I would have only considered waiving it if they would have reached out and communicated to you sooner. The fact that you had to contact them first speaks volumes about where paying rent falls in their priority.That is a very good point.
Another legal issue to research here would be whether the $50 late fee is enforceable. In general, penalties in a contract are not enforceable. Under the law of South Carolina (as elsewhere), "[t]he test for determining whether a stipulation constitutes a penalty is whether the sum stipulated is so large that it is plainly disproportionate to any probable damage resulting from breach of the contract". Moser v. Gosnell, 334 SC 425 (https://scholar.google.com/scholar_case?case=538397204336473509), 431-32 (Ct App 1999) (citation and internal quotation marks omitted).
There is no South Carolina case law specifically addressing what kind of residential late fees are enforceable, but such case law exists in various other states. See, e.g., Biggio v. Puche, 2013 NY Slip Op 31919 (https://scholar.google.com/scholar_case?case=7375521180985367709) (NY Supreme Ct 2013) (flat $150 late fee was unenforceable penalty);
Spring Valley Gardens Associates v. Earle, 112 Misc 2d 786 (https://scholar.google.com/scholar_case?case=14746596091749352985), 787 (NY County Ct 1982) (flat $50 late fee was unenforceable penalty).
But see, e.g., Buchanan v. Kettner, 984 P 2d 1047 (WA Ct App 1999) ($2 per day late fee was enforceable liquidated damages provision and not a penalty).
Please note that I express no view on the specific circumstances of the original poster. I offer no view on whether the particular late fee proposed by the original post is or is not enforceable. This post is not, and does not purport to be, a comprehensive review of all the law relating to late fees. I've merely identified an issue here that requires further research. I have not actually completed that research. The application of the law will also depend on all of the facts, including the exact wording of any written agreements. The law is different in every jurisdiction. Readers should verify any assertions contained in this post, and in all of my posts, using independent research. The expectation is that readers will conduct their own research and not rely on the contents of this post or of any of my posts.
The sale was for $585,000 and the penalty for breaching the contract was also $585,000. It's plain to see why this is "plainly disproportionate," especially since the breach wasn't applicable to all of the $585,000 sale (i.e., there were other assets in the sale). ...
QuoteBiggio v. Puche, 2013 NY Slip Op 31919 (https://scholar.google.com/scholar_case?case=7375521180985367709) (NY Supreme Ct 2013) (flat $150 late fee was unenforceable penalty)
It wasn't a flat $150 fee; It was $150/day.
Another legal issue to research here would be whether the $50 late fee is enforceable. ... This post is not, and does not purport to be, a comprehensive review of all the law relating to late fees. I've merely identified an issue here that requires further research. I have not actually completed that research. ... |
I don't charge a late fee. Instead, I give a rent discount if rent is in by the first. It works out the same. If they pay by the year I give an even larger discount.Just hearing you phrase it as a discount rather than a fee makes me want to throw money at you. What sorcery is this!?
Anyway, you're in a college town. You should realize students have cash flow problems not always of their own cause. Charging a self-righteous late fee seems really anal.
I don't charge a late fee. Instead, I give a rent discount if rent is in by the first. It works out the same. If they pay by the year I give an even larger discount.Just hearing you phrase it as a discount rather than a fee makes me want to throw money at you. What sorcery is this!?
Anyway, you're in a college town. You should realize students have cash flow problems not always of their own cause. Charging a self-righteous late fee seems really anal.