A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Why the late fee is so important
I really dislike charging Tenants late fee’s and that really
makes no sense, because the fee go right into my pocket, but there is something
about charging people more money when they are having problems and that does not
sit well with me.
That being said, the late fee is a very important part of the
Property Management, Tenant relationship.
I just leased a property and the new
Tenant was taken aback by the late fee that was in the lease and that is what I
want. I want Tenants to understand that paying the rent on time is very
important and if you are late, then you are going to pay a price for that
tardiness. The late fee hanging over a Tenant sometimes is the difference from
them paying late or them paying on time.
A good example, I have a very good Tenant and they were late
one month, but they were always on time, so I waved the fee, but the next month
they were late again and they were hit with a substantial fee. They were not
happy, but the late fee stopped what I felt was going to become a habit. Now
their rent is 2 days early. I felt bad about the fee, but it did what it was
designed to do.
When I sign a new Tenant to a lease, I make sure they know
and understand about the late fee and I also explain to them the reason I have
a very strict policy when it comes to late fees. If they don’t like the policy
then they should not sign the lease. But I find that Tenants don’t really
understand how the late fee is implemented until they are charged and then they
understand how costly paying the rent late can be.
All of us get into patterns of behavior and we will often push
paying bills off as long as we can and if we get the impression that we can put
off paying certain bills more than others, we will push and push until we finally
push too far. When it comes to paying rent, I want Tenants to get in the
behavior of paying on time, because I understand the pitfalls of allowing them
to get in the habit of paying late. Behavior is learned and as a Property
Manager, I am the teacher and I need to teach the Tenants on paying their rent
on time, so their behavior is formed.
I understand that charging otherwise good Tenants a late fee
can ruin the relationship between Property Manager and Tenant, but my job is to
do what is right for the Landlord and collecting the rent on time is a very
important part of the job.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.