Late Fee Profile

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Fields Early Payment Discounts

 

See the How to document #213 for a complete explanation of the late fee profile and how to charge late fees.

 

This profile defines a late fee structure. If you have only one late fee rate then only one late fee profile is required. The late fee is part of the Tenant Profile, lease tab.

 

Each profile must have a Record ID consisting of an ID field and a Long Description field which uniquely identifies that profile record.

 

Late fees that are charged through the Scheduled Receivables, Late Fees function will follow the late fee structure.

 

Late Fees

A payment is determined to be late and subject to late fees by adding the Grace Period defined below to the Date Assessed in the Tenant Profile. Assuming the date assessed is the 1st and the grace period is 5 days, a payment is late starting on the 7th. The late fee amount can be fixed or a % of the balance late or the sum of both. In addition, a per day late fee may be applied. The owner may be credited with any percent of the collected fees.

Grace Period in Days

This field defines the number of days after rent is due that it is not considered late. This can be overridden by putting a grace period in the Tenant Profile. The grace period plus 2 is the day late fees can be charged.

Fixed Dollar Amount

Enter a dollar amount if the late fee is fixed rather than based on rent.

Percent of Balance Late

When defined as a percent, the late fee is calculated based on the Balance Late field under Late Fee Calculation Methods.

Charge Per Day Late

This amount accumulates and is calculated based on the number of days between the date of the oldest unpaid charge and the Scheduled Thru date chosen when compiling late fee candidates. This per day amount continues to accumulate.

 

Late Fee Calculation Methods

This group of fields sets up the parameters for calculating late fees.

Base Fee

Select the base fee from the Find List.

Flat Fee plus Percentage - can be a flat fee, a percentage or a combination.

Greater of Flat or Percentage - whichever amount is greater, the flat fee or the amount calculated using the percentage.

Lesser of Flat or Percentage - whichever is less, the flat fee or the amount calculated using the percentage.

Balance Late

This is the amount that will be used to calculate the late fee. Select from the Find List:

All Charges - all unpaid charges will be taken into consideration

New Charges - all unpaid charges since the last late fee was charged

Rent Only - only unpaid rent charges will be considered

All Charges, Cap at Rent - consider all unpaid charges but not more than the monthly rent amount

New Charges, Cap at Rent - consider all unpaid charges since the last late fee, but not more than the monthly rent amount

Rent Only, Cap at Rent - consider only unpaid rent, but not more than the monthly rent amount

All Charges, Set at Rent - all unpaid charges will be taken into consideration when determining if tenant is late, but the percent will be calculated on the base rent amount.

Current Charges, Set at Rent - consider all unpaid charges since the last late fee, calculate late fee percent on the base rent amount.

Rent Only, Set at Rent - consider only unpaid rent, calculate late fee percent on the base rent amount.

Schedule

The schedule for charging late fees can be never, daily or almost anything in between. Select the schedule from the Find List. A monthly schedule means that a month must have passed before another late fee can be charged.

Day of Month

When <<AR, Scheduled Receivables, Late Fees>> are compiled after the day of month entered here, they will still post the next month on that Day of Month..

Minimum

If the calculated late fee charge is less than the minimum, the late fee candidate will be marked skipped.

Maximum

If the calculated late fee charge is more than the maximum, the maximum amount will be used.

 

Other Options

Charge Current and Future Tenants Only

Marking this checkbox will eliminate Past Active Tenants from consideration for late fees.

 

Current Month Processing for Per Day Fees

The default for computing per day fees is to go back to the oldest charge since the last late fee. Marking this checkbox will only go back to the beginning of the current month.

 

Charge Per Day Fees only When Reconciling

This pertains to the Scheduled Receivables function Reconcile Per Day Late Fees.

 

Late Charge

Enter the charge code that will be used on the late fee charge. This code is defined in Setup, Charge Codes. You can type in the code or use the Find List. to select it.

 

Discount for Early Payment of Rent

This section lets you enter information to calculate early payment discounts on rent. See Procedures, Early Payment Discounts for an explanation of how they are calculated. Discount processing can be turned off in Processing Defaults.

Maximum Days after Due Date

Enter here the maximum number of days after the rent due date that you offer a discount or credit on the rent.

Fixed Dollar Amount

If the discount is a fixed dollar amount enter the amount here.

Percent of Rent

If the discount is a percent of the rent amount enter the percentage here.

 

Reconcile Per Day Late Fees

This function allows you to charge per day late fees that get added on to the base late fee.  There must be a Fixed or Percentage base late fee.

 

Compile Reconcile screen

The Reconcile Late Fees screen will display the old charge and the new, revised charge. When you post, the old charge amount will change to the new charge amount and the date will be changed to the date on the Scheduled Receivables screen.

 

The reconciliation can be done daily or weekly or whatever schedule you wish.  If the tenant has paid between the time of the last charge and this time, they will not be charged.