Overview
Late fees can be applied automatically based on your rules. You can customize them at the company, property, or individual lease level — most properties can simply use the company-wide settings, with exceptions set where needed.
Your Late Fees Policy needs to be set up before any rent charges are posted for late fees to work correctly. If the Late Fees Policy is set after Rent charges have already been posted, they will not run for that month for those charges. Late fees will run on future rent charges that are posted or any other accounts you have set up.
Walkthrough Video
Set Up Late Fees Policy Walkthrough Video Link.
Note: The steps below set your company default. To override for a specific property, go to Properties → [Property] → Settings → Late Fees. To override for a single lease, go to Leases → [Lease] → Settings → Late Fees. Lease-level settings beat property-level, which beat company-level.
The Steps
Step 1: Set Up Company Default Late Fee Settings
To set up your default Late Fee settings, click Settings on the main menu. Then under the Property Settings section, click Fees Settings.
On the Fees Settings window, click the Late Fees to enter the Late Fee settings.
You'll notice that there is a default $25 late fee already set up. You can choose to keep this, or we can start fresh and click the 3-dots to the right of it and select Delete. (If you don't see this default late fee setup, move to the next step.)
Under the Set up your Late Fee Structure section, click the Add Late Fee button.
Enter the following information for your late fee rules:
Fee Type - Select either Flat Fee or Percentage. (note that this will only apply to the default income account for Rent).
Fee ($) - If you charge a fixed amount, this will be a dollar amount. If you charge a percentage, enter the percentage amount here.
Frequency - Select the frequency for this late fee. In other words, do you charge this late fee Once, Daily, Weekly, or Monthly?
Grace Period - A grace period is the number of days during which tenants can pay without incurring a late fee. Late fees are applied once the grace period ends. Enter the number of days including the day rent is due to charge the late fee. (For example, if you charge rent on the 1st and want to charge a late fee on the 5th, enter “4” because it will give the tenant the 1st, 2nd, 3rd, and 4th of the month to pay rent. Then on the fifth of the month, it'll charge the late fee.)
Revenue Account - By default the Late Fees revenue account is selected, but you could charge the late fees to a different revenue account you created if you wish.
Description - (Optional) Enter a description for this late fee. What you enter here is what the tenant will see on their lease ledger in the tenant portal. If you leave it blank, the tenant will just see the word “Charge.” You will also see it in the “Memo” column in relevant reports.
Click Add Late Fee if you want additional late fee rules.
Next, select any Fee Limitations & Restrictions you would like placed on Late Fees. This includes:
Maximum Daily Fees - Late fees charged will never exceed the entered amount for a day.
Maximum Monthly Fees - Late fees charged will never exceed the entered amount.
Minimum Balance to Apply Fees - Late fees will only be charged if the tenant's balance exceeds the entered amount.
Only Apply to Most Recent Charge - Late fees will only be applied to the most recent overdue charge (given the above conditions).
Apply Only on Specific Outstanding Charges - Specify which accounts to consider when charging late fees. For example, only charge late fees to Rent, Parking Fees, Pet Fees, etc.
Then, set Notifications & Reminders for the tenant in regard to Late Fees:
Send a reminder 1 day before late fees is charged - Send a notification reminder to the tenant via email or push notification one day before late fees are charged.
Send a notice upon charging late fees - Send an email to the tenant notifying them that they were charged a late fee.
Click Save to finish.
Your late fee policy is now set up. Going forward, this late fee policy will automatically charge the appropriate late fees to any lease set to use the company default settings. You can return to the company late fee settings at any time to adjust them as needed.
Tip: Use the Simulation window on the Late Fees settings to show you exactly how your late fee policy will look when late fees are charged. Click the Edit Inputs button to change the Rent amount and the Delinquency amount (days past due) to preview the late fees that will be charged.
Tip: If you want to charge late fees on the total of the outstanding balance, including old late fees that have not been paid, toggle off "Apply Only to Most Recent Charge." Then, under the "Apply Only on Specific Outstanding Charges" section, toggle that on and select "All Accounts." This will charge a late fee on anything past due.
Tip: To prevent unnecessary late fees, ensure that payment allocation settings prioritize rent payments before other charges like utilities. This ensures rent is fully covered first, avoiding late fees triggered by partial payments. For details about this, read: Set Up Payment Allocation Priority
Tip: Property-Specific Late Fees - You can override the company default late fee settings with a unique late fee policy for a specific property.
Click Rentals > Properties, select the property.
Then Settings > Fees Settings > Late Fees.
Choose "Specify a late fee structure for this property."
This property will then use its own late fee policy instead of the company default — set it up the same way as the company-level steps above.
Tip: Lease-Specific Late Fees - You can override both the company and property default late fee settings with a unique late fee policy for a specific lease.
Click Leasing > Leases, select the lease.
Then Settings > Fees Settings > Late Fees.
Toggle on "Automatic Late Fees"
Choose "Specify a late fee structure for this lease."
This lease will then use its own late fee policy instead of the company or property default — set it up the same way as the company-level steps above. Lease-level settings always take priority over property-level, which take priority over company-level.
Don't forget that you will need to turn on Automatic Late Fees for each lease you want to post late fee charges for when the tenant pays late.
Step 2: Turn on Late Fees for Each Lease
Setting up your Late Fees policy doesn't automatically enable Late Fees on a lease. This needs to be turned on from the lease. To turn on Late Fees for each lease, go into each active lease, go to Settings > Fees Settings, and select the Late Fees settings from there.
Under the Lease Late Fees settings, toggle on "Automatic Late Fees" for the lease.
The lease is now set to charge late fees when needed.
FAQs
Can late fees be removed after they are applied?
Can late fees be removed after they are applied?
Yes, you can delete a late fee charge after it generates if needed.
What happens if rent is late and late fees are configured to post after the 5th?
What happens if rent is late and late fees are configured to post after the 5th?
An initial fee (e.g., $25) is charged 5 days after the due date.
Additional daily charges (e.g., $5) may apply based on the settings.
What if late fees were generated due to an incorrect system configuration?
What if late fees were generated due to an incorrect system configuration?
Sometimes, late fees are triggered due to system errors, such as incorrect recurring rent setups. To address this:
Correct the recurring rent schedule.
Identify and remove any late fees generated by the previous incorrect setup, as these were caused by configuration errors rather than actual late payments.