With RentRedi, you can automatically set up late fees for rent.
Late fees are applied each morning (not the moment a return happens or when you set up the auto-late fee rules) that the tenant is late.
Take the tour, and we'll walk you through it. 😄
Or, follow the instructions below. 👇
From your RentRedi dashboard, click the gear icon
Toggle to the "Feature Settings" tab
Under the "Automatic Late Fee Rules" section, click "Add Rule"
Choose a property and unit to apply an auto-late fee rule to, or leave as "all". (Note: you can apply auto-late fee rules to: all properties and units; one property (all units); or one property (one unit).
Set the grace period and indicate whether it is "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 "Day", but we allow you to set it to "Week" if your grace period is longer.)
Set the first fee and indicate whether it is a dollar amount "$" or percentage "%". (This is the first late fee that will be charged to the tenant after the grace period ends.)
Set recurring late fee. Every day or week that it is late after the first day, the recurring late fee will be added. If you do not have a recurring late fee, you can leave this blank.
Set recurring late fee frequency. Typically recurring fees are for each day, but you can set it to "Week" if that is how your lease reads.
Set max fee. Some leases, states, or municipalities have a maximum late fee that is allowed. Use this box to set a maximum, if applicable. It can be in dollars ($) or by percentage (%).
Select types of charges you want to create auto-late fees for. Typically, this is set to "Rental Income". But, you can elect to charge the late fee to "HOA Fee Income" or "Parking Income", if applicable.
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 tenant to pay late fee and rent together).
Under "Summary" you can see you a summary chart of the rule you created. It will show how fees add up over the days or weeks.
Under "Example Charge Amount", you can use this to see what the fees will look like for tenants if your auto-late fee rules are based on percentage.