Posted by Brandon on January 02, 2003 at 23:39:52:
You can conceptualize the renter as a tenant buyer, but what you have is a tenant. The judge may have wanted to discourage suits of this nature and blew you off. The only why you can be sure is to read the laws in your state to check. Why doesn?t your mentor know?
Late fees to tenant buyers - Posted by Nikki
Posted by Nikki on January 02, 2003 at 22:59:07:
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 Michael
Posted by Michael on January 03, 2003 at 06:43:33:
The max amount you can charge as late fees is determined by state law. Your contract can say $25 per day, but if state law limits it to, say, 10% of the monthly rent, then that’s the most you can collect. What state is the property in question located? And why don’t you ask your mentor? He/she should know this or know where to find out.