Posted by Tim Jensen on January 03, 2003 at 22:38:04:
you get caught.
wink…wink…wink
Late fees to tenant buyers - Posted by Nikki
Posted by Nikki on January 02, 2003 at 22:56:28:
I have recently started doing lease options. I am using paperwork from my mentor. In reference to payments we receive from the tenant buyers, it says that there is no grace period and that payments received after the due date will be considered late. It goes on to say that there is a $25/day late fee charge until full payment is made. Now we have a tenant that is a week late on their $800 payment. Do I really charge them $175 late fee for one week? Is this legal?
I have a rental property and had to go to court for a tenant in the past. The judge told me that it’s illegal to charge more than $2.00/day late fee. This was for a rental tenant. Is it different in this case because the tenant is a tenant buyer?
Thanks in advance!,
Nikki
Re: Late fees to tenant buyers - Posted by JHyre in Ohio
Posted by JHyre in Ohio on January 04, 2003 at 08:50:26:
Assuming that the judge was correct, I’d charge the $2 per day and begin eviction proceedings immediately. I think having such a large fee in your contract is likely to hack off ther court…not good for you. Some investors put all kinds of unenforceable things in their contracts, figuring that the issues will rarely if ever make it to court…seems to work for them, but I tend not to do that.
John Hyre