30
Aug

Arizona Property Management Companies: Late Fee Policy

Arizona property management companies realize creating and executing a late fee policy can be hard, but it will help to make sure you do receive the rent owed by your tenants on time. Collecting your rent payments when they are due is also needed for keeping your properties finances in order. Here is some information your rental agreement payment policy should include:

  1. The day each month the rent will be due.
  2. The day each month the late fee will be applied.
  3. The amount of late fee the tenant will be charged.

Other important issues for Arizona property management companies to consider when deciding on how to charge late fees are:

  • Standard rental policies may sometimes provide tenants a 5 day grace period between the rent due date and the day the late fee will be charged.
  • Most late fees are generally around $25. However, state and local laws should be checked in order to find out the maximum fee the law will allow.
  • Consider whether to charge a one-time late fee or an increasing amount for each day the rent is late. If this option is chosen, it is normally put into place with a maximum cap amount.

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