How to set and collect late fees via ORC
You can set late fees when you create your lease. Alternatively, you can edit an existing lease and add late fees.
Set late fees on mobile
Step 1. Tap on the blue pen icon next to "Schedule Rent Changes"
Step 2. Scroll down and tap on the Late Fees section.
Step 3. Tap Add New Late Fee, then fill in the Days after Rent Due and Amount fields.
Step 4. Tap Save
Set late fees on desktop
Step 1. Scroll to the bottom of the lease page.
Step 2. Hit Add Late Fee and enter the number of days after the rent due date when the late fee gets applied
Step 3. Enter the late fee amount.
These late fees will automatically be added to the rent amount your tenant owes if they don’t initiate payments in time. They will be able to see these fees in the tenant portal and need to pay in full unless you enable partial payments.
When are late fees applied?
If you are using our online rent collection system late fees will be applied if the tenant has not initiated their rent payment before the end of the grace period.
For example, if the rent is due on the 1st and they have a 5 day grace period, if they log in and initiate their payment before the end of the grace period the late fee won’t be applied even though the payment might not hit your account until after the grace period.
If their payment fails and they do not reinitiate a payment before the grace period is over, then the payment will be registered as late and the appropriate late fees applied.
Tenants will see the below banner if they are late with their rent payments.
Note: The default setting for partial payments is off and the amount will not be adjustable unless you enable it. Your tenant will need to pay the amount in full including the automatically applied late fees.
How do tenants pay late fees via Online Rent Collection?
In order to pay their rent and the accumulated late fees, they will need to log into their account on the tenant portal and select "Pay" on the overdue payment.
Late fees will automatically be applied if the tenant does not initiate their payment before the rent due date and the end of the grace period.
Tenants will need to authorize and initiate a payment for the full amount including the applied late fee when they go to pay through our online rent collection system.
We will split the payment into two and automatically reconcile them for you. One for the rent payment and the second for the late fee.
How to forgive late fees / what if you don’t want to charge the tenant the late fee?
There are various reasons why you might want to forgive the late fees for the month, for example, perhaps the tenant had difficulty using the system, or you granted them an extension due to an unavoidable personal crisis. In the scenario, you don't want your tenant to pay the late fee that has been automatically applied there are two options for you.
The tenant will then be able to adjust the rent amount they pay.
Once the tenant completes the payment for the full rent amount the system will no longer show any rent or late fees as owed.
If you go this route it is recommended to put in writing how much rent and the amount in late fees you expect the tenant to pay for this period.
Alternatively, you can choose to temporarily disable late fees on your lease. This has the advantage of allowing you to stay in control of the amount the tenant pays. However, you can't then collect a partial late fee.
Click on edit lease.
Scroll to the bottom and delete the late fees.
You can add these back in later.
This will remove the late fees from the system for both you and your tenant.