Accounting
Late fee
A charge added to a resident's account when rent is not paid by the due date plus any grace period.
Late fees are usually a flat amount, a percentage of rent, or a daily fee up to a cap, applied after a grace period set by the lease. Many states and cities limit the amount, the grace period or how the fee must be disclosed.
Applied consistently, late fees encourage on-time payment. Applied inconsistently, they create disputes and fair housing risk. Check local law before setting or changing late fee rules.
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