How do late fees work?

Most leases charge a late fee if rent isn't received by a certain date. Usually, there is a grace period of a few days after rent is due before the late fee is assessed.

In RPM's standard lease, rent is due on the 1st of the month, and a late fee of 5% is assessed if rent is not received by the 5th of the month. (If RPM begins managing a property with an existing tenant, we will continue to enforce the current lease until it expires.)

The late fee is retained by Management as an Administrative Fee to cover the expense of collection activities.