Rental Investing: Charging NSF Fees

In the area of rental investing, many landlords charge NSF fees to their tenants. Here are a few things to consider about whether you should charge NSF fees or not.

NSF Fees

In some cases, landlords charge NSF fees to their renters if the rent check does not clear. This is done because the landlord is counting on receiving the money in a reasonable amount of time. If the rent check does not clear the bank, the landlord is going to have to wait longer than anticipated in order to receive the money for the rent. When the check bounces, this means that the renter does not have enough money and their account and they are going to have to come up with more money. The NSF fee helps to discourage renters from not having the money on time.


Whenever you are going to charge NSF fees to your tenants, you need to make sure that you outline the rules of this process in the lease. You need to clearly state exactly how much money will be charged if the rent check bounces. You also need to specify if there are any additional fees for being late as well.

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