Rental Investments: Charging Late Fees

When you get involved in rental investments, you need to make sure that you consider all of the financial implications. One thing that you will want to consider is whether you plan on charging late fees to your tenants if they do not pay the rent. Here are a few things to consider in regards to charging late fees.

Late Fees

In most situations, a landlord is going to charge a late fee whenever a tenant does not pay the rent on time. When you are a landlord, you need to determine at what point a late fee is going to come into effect. You also need to decide how much money you are going to charge as a late fee. You can also decide to charge multiple late fees if the tenant continues to avoid paying their rent.

Lease Agreement

When you are writing up a lease agreement for your tenant, you need to make sure to cover every aspect of the late fees that you are going to charge. For example, you need to clearly tell them when a late charge is going to be incurred if they do not have their rent paid by a certain date. You also need to tell them exactly how much the late fees are going to be.

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