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:
Note: 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.
There are two types of the Daily fee:
Fixed amount: The system will automatically invoice the entered set amount every day until the tenant’s balance is positive.
Percentage of outstanding charges: The system will automatically calculate the entered percentage of all outstanding rent invoices every day until the tenant’s balance is positive.
Once you make changes, press Update to save them:
Understanding Grace Periods and Late Fees
By default, the grace period is set to 5 days, but you can choose anywhere from 1 to 28 days, or set it to None if you don’t want to allow any extra time.
Here’s how it works:
If the grace period is set to "None" and rent is due on the 1st, a late fee will be charged on the 1st at 5:00 PM if full payment hasn't been initiated.
If the grace period is "1 day", and rent is due on the 1st, the late fee will post on the 2nd at 5:00 PM, and so on.
Note: If you enable the One-Time Rent Late Fee, it will be charged once per rent cycle, and only on the last day of the grace period if payment hasn’t been made by 5:00 PM.