Setting Late Fees within the Lease Agreement: TurboTenant’s online platform is designed to streamline your rental process, but please note that the late fee stipulated within the lease itself is not editable. If you wish to specify a particular late fee amount or method within your lease, you can utilize the "Provisions" section to add custom clauses. Ensure you clearly state the exact late fee you intend to charge.
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Say farewell to calendar reminders, uncomfortable tenant conversations, or closely monitoring your mailbox or Venmo feed! This guide is about TurboTenant's feature allowing landlords to implement automatic late fees on monthly rent payments set up through our platform. This feature operates independently of any late fees stipulated in your actual lease agreement.
Simply designate a monthly past-due date and a late fee amount in the recurring payment that you create and then, if your tenant doesn’t pay on time, we’ll automatically send the late fee and notify your tenant for you. You’ll get updated when the notification is sent and if further action is necessary.
Please note: It is not currently possible to apply auto late fees to one-time charges or monthly charges other than rent at this time.
Don’t have rent payments set up yet? Here’s our guide on how you can get started with collecting rent on TurboTenant. The directions below apply only to users who already have rent payments ready to go.
Adding Auto Late Fees to a New Rent Charge
Step 1. From your TurboTenant Landlord Dashboard, click on the “Payments” tab in the left-hand column:
Step 2 - In the upper right-hand corner of the screen, click on the “Create Charge” button:
Step 3 - Select the lease for which you want to apply the automatic late fee charge. Click on “Monthly Charge” next, as you are setting up this fee for a recurring rent charge. Click “Next.”
Step 4 - Create your rent charge by filling out the form accordingly. To turn automatic late fees on, click "+ Add Late Fees"
Step 5 - From here, you can create one-time &/or daily late fee rules.
You have the flexibility to tailor your late fee approach based on your specific needs as a landlord. You can apply a one-time initial fee, daily late fees, or both.
Combining both fee types can effectively deter late payments by imposing a one-time charge along with accruing daily penalties:
One-time initial fee: Best for landlords who want to charge a single penalty for late payments, offering a straightforward consequence for tenants who miss the rent deadline. Here, you can determine if the late fee type will be a flat fee or a percentage of the unpaid rent.
For a flat fee, enter the dollar amount your tenant will be charged each time they pay rent late (e.g., $50).
For a percentage fee, enter the percentage of the unpaid rent amount (e.g., 5% of $1,000 rent would be a $50 late fee).
Specify when the one-time late fee will be applied (e.g., 1 day after rent is due)
Daily late fees: Ideal for landlords who prefer to encourage prompt payment by charging an ongoing fee for each day rent is overdue. This method adds a cumulative financial incentive for tenants to pay sooner rather than later.
Enter the dollar amount your tenant will be charged for each day the rent is late (e.g., $10 per day).
Specify when the daily late fees should start accruing, such as 1 day after rent is due.
Step 6 - Lastly, set your late fee limits if you are creating a daily late fee. Once you do, you can review your late fee policy.
Step 7 - Click “Save,” then review your charge. If everything looks correct, click “Next.” Your automatic late fee is now in place!
Adding Auto Late Fees to an Existing Rent Charge
Step 1 - From your TurboTenant Landlord Dashboard, click on the “Leases” tab in the left-hand column:
Step 2 - Your existing or upcoming leases will be listed on this page. Click on the lease for which you want to add the automatic late fee:
Step 3 - Click on the “Payments” tab, located underneath the lease name next to the “Summary” tab. Find the upcoming rent charge for which you want to apply an automatic late fee and click on its “Edit” pencil icon:
Step 4 - On the “Edit Charge” page, scroll toward the bottom and click “+ Add Late Fees”
Step 5 - From here, you can create one-time &/or daily late fee rules.
You have the flexibility to tailor your late fee approach based on your specific needs as a landlord. You can apply a one-time initial fee, daily late fees, or both.
Combining both fee types can effectively deter late payments by imposing a one-time charge along with accruing daily penalties:
One-time initial fee: Best for landlords who want to charge a single penalty for late payments, offering a straightforward consequence for tenants who miss the rent deadline. Here, you can determine if the late fee type will be a flat fee or a percentage of the unpaid rent.
For a flat fee, enter the dollar amount your tenant will be charged each time they pay rent late (e.g., $50).
For a percentage fee, enter the percentage of the unpaid rent amount (e.g., 5% of $1,000 rent would be a $50 late fee).
Specify when the one-time late fee will be applied (e.g., 1 day after rent is due)
Daily late fees: Ideal for landlords who prefer to encourage prompt payment by charging an ongoing fee for each day rent is overdue. This method adds a cumulative financial incentive for tenants to pay sooner rather than later.
Enter the dollar amount your tenant will be charged for each day the rent is late (e.g., $10 per day).
Specify when the daily late fees should start accruing, such as 1 day after rent is due.
Step 6 - Lastly, set your late fee limits if you are creating a daily late fee. Once you do, you can review your late fee policy.
Step 7 - Click “Save” and then review your changes on the following page. If everything looks right, click on “Save Changes.” Your automatic late fee for rent is now in place on future rent charges!
Modifying an Automatic Late Fee
It’s easy to make adjustments to your auto late fees on rent charges. Here’s how:
Step 1 - From your TurboTenant Landlord Dashboard, click on the “Leases” tab in the left-hand column:
Step 2 - Your existing or upcoming leases are listed on this page. Click on the lease for which you want to modify or edit the automatic late fee:
Step 3 - Click on the “Payments” tab, located underneath the lease name next to the “Summary” tab. Find the monthly rent charge for which you want to edit or modify an automatic late fee and click on its “Edit” pencil.
After this, you'll be taken to your charge, where you will then click "Edit" next to your late fee policy.
Step 4 - From here, you can make adjustments to your late fee policy including the fee type, amount, when the late fee is applied, or the late fee limit:
Step 5 - Click “Save” to review your changes. If everything looks right, click on “Save Changes.” Your automatic late fee for rent is now updated.
Removing an Automatic Late Fee
If you find that you no longer want or need to have this feature in place, you can turn off automatic late fees on a charge at any time. Here’s how:
Step 1 - From your TurboTenant Landlord Dashboard, click on the “Leases” tab in the left-hand column:
Step 2 - Your existing or upcoming leases will be listed on this page. Click on the lease for which you want to remove the automatic late fee:
Step 3 - Click on the “Payments” tab, located underneath the lease name next to the “Summary” tab. Find the monthly rent charge for which you want to delete an automatic late fee and click on its “Edit” pencil icon:
Step 4 - Click "Edit" next to your late fee policy and simply uncheck the previously selected late fee option(s).
Step 5 - Click “Save” and then review your changes on the following page. If everything looks right, click on “Save Changes.” Your automatic late fee for rent is no longer active.
Deleting a Sent Late Fee Charge
Let’s say your tenant pays your late fee charge offline and you need to delete it from TurboTenant so they don't get charged twice. No sweat! If a late fee is generated and marked as unpaid, you can delete it as you would any other normal charge.
Here’s an article that further elaborates on this process and how you can delete sent charges to your tenants to solve this problem.
Setting Late Fees within the Lease Agreement
TurboTenant’s online platform is designed to streamline your rental process, but please note that the late fee stipulated within the lease itself is not editable. If you wish to specify a particular late fee amount or method within your lease, you can utilize the "Provisions" section to add custom clauses. Ensure you clearly state the exact late fee you intend to charge.
TurboTip: The automatic late fees feature is distinct from any late fee clauses in your TurboTenant Lease Agreement. If you wish to specify or change late fee details in your lease, use the "Provisions" section for custom clauses.
Still have questions? Reach out to our Support Team via chat or by email at [email protected].