Fees for late rent payments can be charged as flat fees or between 5 and 10% of the tenants’ monthly rental rate.
Landlords can only impose penalties in accordance with the
terms of a lease agreement.
If the lease agreement does not include clauses that mention
late fees, landlords cannot demand penalties for overdue rent payments.
Check your local laws for acceptable late fee charges as
there is a maximum amount that can be charged each month.
Whether it is charged as a flat fee or a percentage of rent,
late fees should never exceed more than 10% per month.
The lease agreement should outline all the terms related to
rent payments, including a policy regarding late rent fees.
A high quality agreement should include:
·
The monthly rent amount
·
The due date of the monthly rent
·
A policy if the due date falls on a holiday or
weekend
·
Where and how the tenant should pay the rent
·
A grace period before the rent is considered
late
·
How will the tenant be charged and how much if
the rent is late
·
What happens if the tenant doesn’t pay at all
·
Tenancy termination details
RealRenta Landlords can also create another ledger (service ledger) for payments
that are not rent, like late rent fees, water charges etc.
Use RealRenta for
Free for up to 2 months now and join the growing number of smart Aussie
Property Investors, who are increasing the return on their property
investments.
www.realrenta.com.au
Marlene Liontis
Monday, 15 July 2019
