How are Late Fees calculated through eRentPayment?

Within eRentPayment the system checks whether a late fee is required based on the Scheduled Date of the payment and the Month/Year selected for the payment.  Within each property the Property Manager/Landlord specifies the Due Date and the # of Days after the Due Date before Rent is considered late and this is used to calculate if a payment is late for that month.  Please keep in mind the # of Days setting is not the day of the month to start charging late fees as it is the grace period.  For example, if the Due Date is the 1st and the # of Days is set to 4 then the system would charge a late fee if the payment is submitted or scheduled for after the 5th, such as on the 6th or later. 

In regards to the Flat Fee and Per Day Fee amounts on the first day the payment is late the system will charge the Flat Fee amount plus one Per Day amount.  If the rent is late after the 5th for a property that has the Flat Fee set to $30 and the Per Day amount set to $10 per day then on the 6th the system will charge $40 (Flat Fee of $30 plus one $10 Per Day) so you can adjust your Flat Amount as necessary to calculate the total amount you want charged the first day late.  With this example if $30 total should be charged the first day and $10 each additional day the Flat Fee should be set to $20 and the Per Day set to $10 so the first day late charges $30 total ($20 Flat plus one $10 Per Day) and $10 each additional day.

If the Maximum Late Fee amount is set in the property this will limit the maximum amount in Late Fee transactions the renter pays for the Month/Year selected for the payment, not just the current payment, as the system checks for any other pending or processed Late Fee transactions from that renter for the same Month/Year.  For example, if the renter submitted a payment earlier in the month and paid a Late Fee of $50 and the Maximum Late Fee in the property record is $50 no additional Late Fee transactions would be generated for any additional payments the renter submits late for that Month/Year.  If the Maximum Amount was set to $60 the renter would only pay $10 for an additional late payment.

Add Feedback