![]() Tenants who have good payment records but forget to make a rent payment will be incensed when the late penalty is imposed. The apartment manager generally has no leverage except eviction, an action that can be difficult, costly, and counter-productive. The problem for apartment managers is that it can be very difficult to collect penalties for late rent payment. The primary purpose of the penalty is to discourage late payment and the secondary purpose is to obtain the interest due. Most investors or apartment management companies impose penalties for late payment of rent. Overdue rent is a loan, an unauthorized loan. Money has a time value, and that is why interest is charged on loaned money. The holiday weekends can be anticipated and the apartment manager can distribute courteous reminders requesting that tenants pay rent before they leave. Tenants also tend to forget about the rent payment when they take business trips that overlap the rent payment due date.Īdditionally, special events in a tenant's life such as graduations or weddings tend to obscure all memory of rent payment due dates. Tenants make travel plans and leave town forgetting that the rent will be overdue before they return. It occurs when the rent payment becomes due during a long holiday weekend. There are two notable conditions when that occurs. Tenants sometimes forget the rent payment is due. Although payment of rent is a tenant's contractual obligation, it is prudent for an apartment manager to take actions to facilitate the process. Collection of rents is a continuous challenge for an apartment manager.
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