How I Collect Late Rent Fees

by Richard Shaw
(Brockton, MA. USA)

I know that in many areas, you are not allowed to charge or collect late rent fees. What I have done for late rent collection is this:

I wanted to rent my property (3 bedroom home) for $1300.00. When I advertised the property for tenants, I listed it for $1400.00 per month.

This did two things: It weeded out those who thought that if they really saved and watched their spending, that they could afford the $1300.00 rent. In other words, the potential tenants that looked at the home had a higher income.

When I found the right tenant, I told them that if they paid their rent on time, they could reduce it by $100.00. This would apply monthly. The rent had to be in my hands by midnight of the due date. So in reality, the late rent fee is built into the rent.

I have two properties, the tenant for the first property has never been late with rent and has gotten the discount for 4 years straight. The tenant for the second property has been late in paying rent 50% of the time, which gives me another $600.00/year income.

This works for me... I also give both my tenants a turkey at Thanksgiving and a small gift basket at Christmas. Their bosses don't do it, so they appreciate it. The trick is to make them want to pay me first every month.

Good luck, and I hope this helps!

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Great NEW
by: Anonymous

Fabulous idea. I think I'll do the same.

i loved NEW
by: maileen

Did you write any lease for this tenants.

by: Anonymous

I love the idea of building in the late charge. In my state we are not allowed to charge late fees. My tennant is late every month and now is rufusing to pay. I have a long road ahead of me. I wish I read this idea before my nightmare began.

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