We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
June 18, 2021, 12:49:23 am
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
June 18, 2021, 12:49:23 am
Home Help Search Calendar Login Register

Author Topic: late fees  (Read 16255 times)

Offline rlack72

  • Member
  • **
  • Posts: 99
Re: late fees
« Reply #30 on: February 27, 2007, 10:41:52 am »
$50 was just a number thrown out there.... not a real world number on that amount of rent.

I guess I am just too nice. It is not just about the money to me, it is about treating my tenants the way I would like to be treated.

Offline propertymanager

  • Member
  • *****
  • Posts: 4854
Re: late fees
« Reply #31 on: February 27, 2007, 10:45:28 am »
Quote
My point is

$450 if it is early
$500 on time
$550 if it is late

This a $100 diference to the person paying rent.

That's ridiculous.  If your real market rent is $500 with a typical positive cash flow of $100 per month, you're giving away HALF of your cash flow for nothing!  That's CRAZY (just as Rich said).  In fact, it's simply financial suicide.  I don't give away half my cash flow to encourage something that I insist on anyway.

Quote
It is not just about the money to me, it is about treating my tenants the way I would like to be treated

NOT ABOUT THE MONEY?  Are you kidding?  I certainly would NOT run a business so that I can treat people nicely.  BUSINESS IS ALL ABOUT MAKING MONEY! 

Mike
 
« Last Edit: February 27, 2007, 10:57:02 am by propertymanager »
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline rlack72

  • Member
  • **
  • Posts: 99
Re: late fees
« Reply #32 on: February 27, 2007, 10:48:52 am »
It is about making money. But that's not the only thing. I probably look at it a little differently then some of you due to the fact that it is not my only source of income.   :biggrin

Offline Rich_in_CT

  • Member
  • *****
  • Posts: 3209
Re: late fees
« Reply #33 on: February 27, 2007, 10:55:57 am »
It is about making money. But that's not the only thing. I probably look at it a little differently then some of you due to the fact that it is not my only source of income.   :biggrin
Primary or secondary source of income has nothing to do with it.  When I invest in something I want a return, I'm not try to save the manatees.

Offline patat335

  • Member
  • *
  • Posts: 31
Re: late fees
« Reply #34 on: February 28, 2007, 08:33:37 am »
I have a high first income, and i still don't give anyone a break for early payments, i think that nuts. i always stick to my 150.00 late fee, i found out that in fl as long as agreed you can charge a one time late fee  a rental month. i still did not get a confrim on how much but three source say it has to be signed by both parties so i guess my new lease are going to have a 250.00 late for the month and hopefully some of my tenants will be late.

Thanks Everyone

Offline rlack72

  • Member
  • **
  • Posts: 99
Re: late fees
« Reply #35 on: February 28, 2007, 09:56:34 am »
Nuts it may be. But I have never had one late payment in three years. I don't know how many landlords can say that.

Offline tworent

  • Member
  • *
  • Posts: 47
Re: late fees
« Reply #36 on: February 28, 2007, 10:15:03 pm »
Nuts it may be. But I have never had one late payment in three years. I don't know how many landlords can say that.

I would say if you never had a late fee in 3 years then your rents are to low.
I think you need to push the limit of rents as high as possible. My 2 cents

Offline henryinma

  • Member
  • ***
  • Posts: 461
Re: late fees
« Reply #37 on: February 28, 2007, 11:45:11 pm »
I think the rents and having a late fee have nothing in common. If your rents are too high, that means the tenant leaves and finds a place that's cheaper. It's how I get rid of bad tenants that scare away good tenants. Every time I tell them I'm raising the rent by a lot, they leave. Win-win for me.

If the tenants are late, that means they're having money trouble and maybe you didn't do a good job screening. Of course sometimes it doesn't matter what kind of screening you do, things happen.

Now the sign you're not charging enough rent is if you have a waiting list of people who want your apartments. Most people don't have that problem.

Oh and I don't think I've ever collected a late fee. Either they were evicted or left without paying the rent has been my bad tenants. We just have that rule in this state that you can't collect a late fee until it's 30 days late.
Realtor/Rental Property Owner
Boston, MA

Offline Rich_in_CT

  • Member
  • *****
  • Posts: 3209
Re: late fees
« Reply #38 on: March 01, 2007, 06:48:06 am »
Nuts it may be. But I have never had one late payment in three years. I don't know how many landlords can say that.
How many rentals do you own?  I'm guessing only a few and would guess it is merely good luck that you have not had any lates.

Offline propertymanager

  • Member
  • *****
  • Posts: 4854
Re: late fees
« Reply #39 on: March 01, 2007, 07:13:46 am »
rlack,

Rich is absolutely right.  Not having a late payment in 3 years only means that you don't have many rentals.   If you have a lot of rentals, you will have tenants paying late (and being evicted) with some frequency.  We evict 1% per month on average due to non-payment.  If I only had one rental, that would take over 8 years before I would have a late payment/eviction  and that's my average with many low income rentals.  If you have all SFHs, your late pay rate should be significantly lower.  Also, as Rich said, luck plays a role in the equation.  If you have only a few rentals, you may not have a single late payment for 10 years and then have 50 the next year. 

Good Luck,

Mike
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline rlack72

  • Member
  • **
  • Posts: 99
Re: late fees
« Reply #40 on: March 01, 2007, 08:06:51 am »
I agree. I think my rent rates are a little on the low end and luck has a lot to do with it. I originally got the idea to give a break for my customers if they pay 5 days early or more from MrLanlord.com. It may not be the reason I get my rent payments on time.....but I don't want to change it and find out otherwise. I am the guy who wants a good deal for my renters and a good deal for me. It does not have to be all one sided.

 




SMF 2.0.15 | SMF © 2017, Simple Machines