How much should my late fee be?
How much should my late fee be?
7 (1) A landlord may charge any of the following non-refundable fees: (d) subject to subsection (2), an administration fee of not more than $25 for the return of a tenant’s cheque by a financial institution or for late payment of rent.
What is the maximum amount of late fee that you are?
Also the received a different invoice in Jan. that has not been paid. So can we charge then for Dec invoice $500 late fee ($50 x 10 months) and Jan late fees $450 ($50 x 9 months) for a total of $950 in late fees or are we only allowed to charge $500 total because in Jan the Dec invoice had not been paid? Ask a lawyer – it’s free!
Is it legal to charge late fees to customers?
Late fees, in general, are perfectly legal to charge customers. Of course, there are some guidelines you have to follow when doing so. For instance, you can’t charge an obscene amount of money. But what’s considered reasonable? This is left for the company to decide, but the amount should be fair.
Can a landlord charge a flat fee for late rent?
State and local laws dictate how much of a fee a landlord is allowed to charge for late rent payments. Whether you charge a percentage of the rent for the late fee or a flat fee for each day rent is late, there is usually a maximum amount a landlord can charge per month in late fees.
What should I charge for a late payment on an invoice?
Be sure to write up a contract that specifies your late fee amount. Normally, this is a percentage of the total invoice amount. Also, don’t just use late fees to entice customers to pay on time. Offer incentives, such as discounts for paying before the due date. Before trying to enforce your late payment fees, be sure to look over the situation.
Also the received a different invoice in Jan. that has not been paid. So can we charge then for Dec invoice $500 late fee ($50 x 10 months) and Jan late fees $450 ($50 x 9 months) for a total of $950 in late fees or are we only allowed to charge $500 total because in Jan the Dec invoice had not been paid? Ask a lawyer – it’s free!
Late fees, in general, are perfectly legal to charge customers. Of course, there are some guidelines you have to follow when doing so. For instance, you can’t charge an obscene amount of money. But what’s considered reasonable? This is left for the company to decide, but the amount should be fair.
How much does a landlord have to charge for late rent?
As a general rule of thumb, landlords should provide a grace period of at least five days before the rent is considered late, and should never charge more than 10% of the rent as a late fee (to err on the side of caution, charge 5%). Late fee laws also say when the late fee will be implemented.
Be sure to write up a contract that specifies your late fee amount. Normally, this is a percentage of the total invoice amount. Also, don’t just use late fees to entice customers to pay on time. Offer incentives, such as discounts for paying before the due date. Before trying to enforce your late payment fees, be sure to look over the situation.