Want to make sure late rent is handled automatically — without chasing tenants every month? With RentRedi, you can set up auto-late fees!
Note: Late fees are applied each morning when rent is late — not immediately when a payment is returned or when you first set up the auto-late fee rules.
Take the tour, and we'll walk you through it! 🚶
Or, follow these simple steps below: 👇
From your RentRedi dashboard, type “late fee” in the search bar.
Click the Late Fee Rules result.
At the upper right corner, click Add Rule
On the left side, you can apply the rule to All Properties and All Units, or select a specific property or unit
Set the grace period and indicate whether it is by Day or Week. (The grace period is the number of days or weeks to wait before the first late fee is applied. Typically, the grace period is set to Day, but we allow you to set it to Week if your grace period is longer.)
Set the first late fee and indicate whether it is a dollar amount $, or a percentage of the charge amount %. (This is the first late fee that will be charged to the tenant after the grace period ends.)
Set a recurring late fee. Each day or week after the due date that payment is late, the recurring late fee will be added. If you do not have a recurring late fee, you can leave this blank.
Set recurring late fee frequency. Typically recurring fees are for each day, but you can set it to Week to align with your lease.
Set Max Late Fee. Some leases, states, or municipalities have a maximum late fee that is allowed. Use this box to set a maximum, if applicable. It can be in dollars ($) or by percentage (%).
Select the type of charges you want to apply auto-late fees to.
By default, this is set to Rental Income, which works for rent charges. You can also select other income types, like HOA Fee Income, Parking Income, Miscellaneous Income, or any category that matches the types of charges you want late fees applied to.
Set how you want the charge to be displayed.
Create a Separate Charge: Show Rent and Late Fee as separate charges (works well for keeping income types separate in accounting).
Add to Existing: Show Rent and Late Fee as one charge (encourages tenants to pay late fees and rent together).
Under Summary, you can review a chart of the rule(s) you created. It will show how fees add up over the days or weeks.
Under Sample Charge Amount, you can see how the fees will appear for tenants if your auto-late fee rules are set as a percentage.
Review the table to see how your late fees are applied
Click Save when you're finished.
Done!🎉
💡Want to delete a late fee rule?
Check out this Help Article for more info!