Setting Up and Applying Late Fees

How to configure your late fee policy in Rentadminly and apply it consistently.

Why Consistent Late Fee Policy Matters

Late fees only work as a deterrent if they're applied consistently. If you waive them for some tenants or some months but not others, you risk:

Fair Housing Act issues (inconsistent enforcement could appear discriminatory)

Tenants learning they can pay late without consequences

Reduced cash flow reliability

Go to Settings → Late Fee Policy to configure:

**Grace period**: Number of days after due date before fee applies (e.g., 5 days)

**Fee type**: Flat amount (e.g., $50) or percentage (e.g., 5% of rent)

**Maximum late fee**: Ensure compliance with your state's cap

Most states cap late fees at a percentage of monthly rent or a flat dollar amount. Common caps:

**California**: 5–10% or reasonable amount

**New York**: $50 or 5% (whichever is less)

**Texas**: No statutory cap, but must be "reasonable"

**Florida**: No statutory cap

Always verify your state's current limits.

When rent is late:

1. Go to Payments → Record Payment

2. Include the late fee as an additional line item OR record it as a separate payment entry

3. Send a notification to the tenant from the Payments page

If you choose to waive a late fee (e.g., for a long-term tenant with a genuine emergency):

Record the payment without the late fee

Note in the payment record that the fee was waived and why

Do this sparingly and document your r