Fees For Late Rent Payment
Does anybody know how much you can legally charge a tenant per day for late rent payment in NY? My lease says $25/day until paid in full, which is (admittedly) a heavy-handed scare tactic, but how much can I legally enforce? I'm running into a situation where I may need to start levying fees. Any help would be appreciated. Thanks.
The maximum late fee allowed should be codified in your landlord-tenant laws.
In many cases, you will not find a dollar amount, but rather a percentage of the rent. For example, in MD the maximum late fee permitted is 5% of the rent (or partial rent) due.
Call your local apartment association (or any apartment assn. in your state for that matter). They should be able to tell you.
As far as I know, there is no specific amount that is set as a maximum (except maybe by specific counties or municipalities). However, there is a requirement that it be a reasonable amount. What's reasonable? I say $50. That's what I charge for my properties.
It really is a fine line. You have to be careful to not run up the late fees so quickly that it becomes impossible or impractical for the tenant to pay. Like the saying goes, "If you owe someone $10 it's your problem. If you owe them $1,000 it's their problem." Make sure that the late fee motivates your tenants to pay on time, not refuse to pay at all.
Good luck.
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