Grace Period for Late Fee? : ezLandlordForms

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Joe O

started a topic almost 12 years ago

I have a new Tenant coming in. I want to put in my rental Agreement (month to month) that "rent is due on or before the first day of the month. If rent is not paid on time, a late fee will apply." In another place I specify what exactly the late fee is (5% of the monthly rental amount). I'm tired of the Tenant paying on the 5th day as a rule, instead of on the first day, when it is due. My question is, do I have to give a grace period (like 5 days or 7days) before I can consider the rent late?

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Karen S

said almost 12 years ago

Joe, most states if not all have a grace period. However, the grace periods do range from state to state.

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Bob R

said almost 12 years ago

1st, I would not use the wording “due on or before.” Just say “due on the 1st of each month.” …… I have not seen any law that stipulates a grace period must be given. There is nothing wrong with giving a grace period. I’m sure you have used grace periods inn the past. There are times an individual may need a few days due emergencies, when they get paid or the 1st falls on a weekend. If it’s a pain to receive and make a deposit, consider having tenant make a direct deposit. A $100-$200 late fee will help keeping the rent check on time. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Unfortunately, it is impossible to give comprehensive real estate/tax advice over the internet, no matter how well researched or written. Therefore, it is up to you to become familiar with Fed/State/Local Tax Laws. Also, if you have real questions, you should consult with an attorney or tax professional……Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Simp-List.com. Free Trial Download with data. Check out the new $$$$ for 2013

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Joe O

said almost 12 years ago

Thank you both for the info. Joe

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Marcello M

said over 11 years ago

You can not train a tenant to pay on time like you can housebreak a puppy. You may put it in your lease that the tenant can expect a Pay or Quit notice posted to his door and another by certified mail the first moment the rent is late. If the rent is not paid withing the limits of the notice provided by your state law, file for an immediate eviction. Once the eviction is filed, refuse any attempt to pay and proceed with the eviction. This is the only thing tenants will respond to.