When is the Rent Due and When is the Rent Late?

When starting a tenancy a landlord has to figure out when rent is due and when it is late. It makes sense to have all rents due on the first of each month no matter what day the tenant took possession and no matter when the lease ends. This is industry standard.

So, the rent is then late on the second. But most landlords employ a grace period before a late fee is charged to the tenant's account. Many landlords allow a five day grace period. The problem with this is that weekends and holidays cannot be counted as the last day of the grace. So, if the 5th of the month fell on a Saturday of a three day weekend, then the rent would not be subject to a late fee until Tuesday, the 8th! I suggest that your grace period be cut down to the 3rd, to eliminate the weekend problem. Some landlords have no grace period but that can appear to be a bit heartless.

Here is the paragraph from HomePointe's Rental Agreement:

If entire rent due is not received in office by the 3rd of any month, 6% of rent rate may be added to the amount due as a late charge.Resident agrees to pay the maximum the law allows for all checks returned by the bank. After two returned checks, Resident agrees to pay with only certified checks for the next 12-month period. Resident agrees to pay the cost to serve/mail notices to enforce this agreement in addition to late fees. Resident agrees that payments, at the option of the landlord, may be credited in the following order:Late charges, NSF charges, repair charges, notice serving charges, other charges, rent, unless otherwise stipulated and agreed to by allparties. Acceptance of any partial payment does not relieve Resident of the obligation to pay any outstanding balance due.

NEXT: What is proper late fee to charge?

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