
How To Make Sure You Get Your Late Fees
An article about a Kansas Supreme Court ruling (Click Here) was celebrated as a big win for a landlord when the court decided his tenant had to pay $21,000 in back late fees. I think he lost.
If the landlord followed these simple management practices the late fees would already be in his pocket and he would have avoided the drama and expense of several huge court trials all over late fees!!??
Three Simple Rules
- Always classify “late fees” as “additional rent” in the lease and elsewhere, because in Florida you can evict a tenant for non-payment of rent but not unpaid late fees, security deposit, or expenses.
- Adopt a company policy written into the lease: “Any money paid will be applied to non-rent items first and to the rent.” This way, if the tenant tries to pay rent but not some other money he owes, he is short on the rent!
- Use on-line rent collection with automatic late fee invoices. Too many landlords go lenient on late fees, soon the tenant catches on and never pays them. Tenants paying online see the late fee automatically added, reducing disputes. The landlord can still forgive them anytime he wants.
Now, if there is a downside to this, it is: Your tenants will be more likely to pay their rent on time.




