Post date: Aug 02, 2016 5:34:36 AM
There is no actual way to calculate the damages a late payment causes a landlord. As such, Late Fees have always been a point of contention and something you didn't really expect to be awarded in a court case - it's a bonus, if you do. There are two suggested ways to charge Late Fees:
Daily Fee - about $3-5 per day or a daily fee that compounds to late fee that is approximately 6% of rent after 15 days.
Flat Fee - 4-6% of lease (or average of leases to get the same flat rate for everyone)
The City of West Hollywood limits the Late Fee to 1% of the monthly rent AFTER the 5th day following due date and the Late Fee must be established as a condition of tenancy.
Landlords may charge $25.00 for the first returned check and $35 for each returned check after. The landlord may also require rent to be paid in cash for a period not exceeding 3 months via letter after the returned check.
Some links for you: