Rental Investments: When are Additional Fees Justified?

The best way to make money from your rental investments is to charge fees to tenants. There are times when additional fees are justified beyond what you charge for rent. Here are 2 examples:

Late Fees

If you don't charge late fees for rent, then you have to be willing to live with the fact that you may not receive rent payments on time. Charging late fees is justified, because you'll deter late paying tenants and avoid paying late fees for the bills that you owe. Check with your local laws to ensure that you're not charging an excessive amount.

Pet Fees

More landlords are charging pet fees or pet rent in states where it's legal to do so.  The rationale is that state laws limit the amount that landlords can charge for a security deposit. You can collect the deposit for the additional damages caused by a pet by charging a monthly fee. There's also the argument that the fee is for the privilege of the pet living in the apartment, but that might be less persuasive than the security deposit argument. 

Managing rental investments is a business, and you have to look for fair and reasonable opportunities to charge fees. If you don't, then you could lose money.

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