A late fee, also known as a late fine or a past due fee, is a charge levied against a tenant for not paying an invoice by its due date. Late fees are disabled by default.
To set up late fees, please click on your profile picture, select the Settings option and click on the “Invoices &Late Fee” link in the "Accounting settings" section. Beneath the Global Rent Late Fee Settings heading, you have the option to impose either a one-time late fee, a daily late fee, or both. The system will automatically generate the late fee once the tenant's grace period has expired.
Please note!
These are global settings that will autofill on newly created leases. However, these changes are not automatically applied to previously created leases. You will need to activate late fees separately in every lease when moving in a tenant.
There are three different types of one-time rent fees:
Fixed amount: The system will automatically invoice the entered set amount;
Percentage of recurring charges: The system will automatically calculate the entered percentage of the rent invoice;
Percentage of outstanding charges: The system will automatically calculate the entered percentage of all outstanding rent invoices.
By activating the Daily rent late fee, the fee will be assessed every day until the tenant’s balance is positive.
Note! The Maximum monthly balance is calculated based on the posted daily late fees only. The one-time fee amount won't be included if enabled.
There is only one type of Daily fee - Fixed amount: The system will automatically invoice the entered set amount every day until the tenant’s balance is positive.
Once you make changes, press Update to save them:
The grace period is five days by default. You may select from none to 30 days. If the grace period is "None" and due day 1st, late fees would be posted on the 1st if full payment is not initiated by the time you selected. If the grace period is "1 day" and due day 1st, late fees would be posted on the 2nd if full payment is not initiated by the time you selected, etc.
Please note!
By activating the One time rent late fee, the fee will be assessed once per rent schedule cycle on the last day of the grace period.
As a reminder: these settings will be autofilled on the Lease Transactions step while creating a lease, and you will be able to update them for each lease specifically:
In order to edit the late fees on an existing lease, you can go to the Lease Transactions tab of the lease, then go to the Extra Fees section at the bottom, and click "Edit Late Fees" to manually adjust the late fee on that lease. Please check out this article for more details on editing leases: How do I edit a lease?