Late Rent Fees
I have (2) rentals that are late every month for one reason or another. I didn't want to evict them because they do pay. I charge $20.00 after the 5th and a dollar per day for every day late there after. I dont feel that this amount is encouraging the Tenant to pay on time. How much can i legally charge in NJ without being cited as being absorbent ? And where can i find this information to print it out for my satisfaction. Can someone help me ?
Jerry 
lets see I collect 365 a mounth rent plus get a 20.00 dollar bonus" plus" sounds good to me.
not trying to be sarcastic but as long as thier paying even if its late your collecting more rental dollars per month.
ED
Dear Jerry,
You have my deepest admiration, you are a very brave man. To confront a tenant who is having problems keeping the roof intact over his head and charging him late fees which of course only complcate his monentary position.
All this in Joisey? I am amazed you have not had a gun thrust up your nose while some street taught gentlemen gave you book and verse on the importance of being helpful to those who can't pay their bar tab, much less make the rent payments.
Do you do your collections with a sap or are you a traditionalist like me and merely use a roll of dimes? I must show you my stitch marks on the back of my head created one night when distracted by a histronic display of temper I neglected to keep the spouse in sight and she wacked me with a beer bottle.
Lovely woman gave me another beer as her husband in a contrite mood attached the butterfly tapes at my instructions to hold my brains inside while we prepared for the drive to the hospital. I never coped out on them. We became friends. They were always on time. A small price to pay. Besides the marks are such that little children can play tic tac tow. Try doing that with a mirror in your hand. Only way you can get your X's and O in proper place. Ah the pleasures of rental collection.
Reminisce? Lucius
How about renting for, say, $400 per month, but if paid by the 1st (or whatever date due) the tenant can knock $25 off the rent...spins into a bonus for being on time...(in other words, you'd rent it for $375 anyway, just a way to help get it on time). Also helps soften the blow of your next increase:
"Bob, I am raising the rent to $425, but if you pay by the due date, it's only $395" (knowing your needed increase of the rent was only $20, not the $25 anyway).
This doesn't always work, but may be worth the try...
If the tenant takes care of his unit and calls me if he is going to be late with the rent and doesn't have a problem with the late charge (I charge a flat 6% of the rent amount), I let him stay. If they are messy people or complain about the rent amount or are general pains-in-the-butt, I terminate their month-to-month agreement and find better tenants.
Check your state laws for late-charge specifics. The laws in California are very ambiguous about late fees, but I belong to the California Apartment Association and generally follow their guidelines.....they can afford better attorneys than I can!
P.S. See if there is an apartment association in your state. My annual dues (around $80) are an absolute bargain for what I get (A magazine geared toward owning rentals, downloadable forms on the internet that have been scrutinized by their attorneys, legal advice by e-mail or phone, various classes, monthly meetings, updates on new laws that have passed as well as watching bills that are about to be voted on, etc)
The Apartment Association is a great suggestion. I am sure there is a website to see if there is one in your area.
I'm having the same problem: I collected the late fees' and Everything was fine, but every month the rent got later and later. Until finally they were two months late. I finally had to start the eviction. They contested it and know we have a court date set. I'm not worried, when it comes down to it the judge is going to ask them if they paid or not.
By the way: Does any body know of a good landlord Association in Las Vegas or Nevada?[ Edited by scr2001 on Date 01/06/2004 ]
You may want to pick up the book "landlording" by robinson. good bood.
My problem is I get to know my tenants, and I like them, even if they're struggling to pay rent. I'm warning you, that I am being a hypocrit in this post. I would LIKE to landlord this way in the future, but am not there yet.
I think the best policy is "Friendly but Firm ".
Case in point. One time my insurance policy check arrived (to the company) one day after it was due. I recieved a cancelation policy in the mail. Two days later I recieved a notice of renewal. Guess what....that's the first bill I pay every month.
what if you were to post eviction notices on the 6th of the month and EVERYONE knew that you did it and were serious. You might have to make a few examples, but after that, people would FEAR being late. They'd be sending checks next-day mail In my state you can charge treble (triple) damages after a 3 day notice is posted. A good compromise is probably late on the fifth, evict on the 10th, and have a big down payment.
You may get the same effect if you have a very high late fee AND enforce it. Around here 10% plus $10 a day isn't uncommon.
I look at it like this. My insurace company, mortgage company, utility companies, etc are all very strict with their late fees. If I'm not strict, I'm the one that gets stuck in the middle and can't pay my bills, get my credit messed up, etc.
the rental discount is a good idea.
I realize that the cost of vacancy is high, but you may only have to do it once or twice and let people know when they move in how it's going to be, and then stick to your guns.
I also agree that the rental discount is a good idea. That being said, I can't say that people are any more on time using that method. Some people would rather be late than take the discount.
I like and will try out the idea of fast eviction proceedings. 5 days late and you get a letter of eviction.
[addsig]
I agree. If they are paying the late fee, its money in your pocket. Especially if they are a good tenant. Another way of helping them pay on time would be to change the want its handled. Many people end up charging $100 over the amount of rent they typically would rent the place out for, then give a discount for early payment of rent. Example. Rent is $800.00 a month, but if you pay before the end of the 5th day of the month on midnight, rent will be discounted to $700.00
-Dale
Quote:
On 2003-12-27 20:04, jerre19 wrote:
I have (2) rentals that are late every month for one reason or another. I didn't want to evict them because they do pay. I charge $20.00 after the 5th and a dollar per day for every day late there after. I dont feel that this amount is encouraging the Tenant to pay on time. How much can i legally charge in NJ without being cited as being absorbent ? And where can i find this information to print it out for my satisfaction. Can someone help me ?
Jerry <IMG SRC="images/forum/smilies/icon_confused.gif">
[addsig]
My renter. A man, wife and children. Good people but struggling to make ends meet. Christmas comes and he changes jobs. Thus is late on the rent. Deal we worked out, $550 December rent, $550 Jan rent, $100 in late fees (Jan rent due the 5th) and I could have charged more according to lease, 1% late charge per week on outstanding balance, pay 120 a week PLUS normal rent or $25 late charge. I would just evict them but...It is January....I start teaching in 5 days and do not have time to paint and do minor repairs before I rerent...I really don't want to deal with court system....I would have to pay to heat which would make cash flow even more negative (due to no rent) than it is now...he has been very useful in doing work around the house (painting, windows, siding, gutters etc). so he stays ...for now.