In this article, we explain the Late Fee Setup in detail. (Late Fee Setup is located on the Defaults tab of the Property screen.)
Base Fee Row
Base Amount: The amount of the initial late fee, either a dollar ($) amount or a percentage (%) (depending on the Late Fee Type).
Late Fee Type: There are four options: % Owed Total, % Monthly Rent, Flat Amount, and % Owed Month. See below for detailed explanations.
Grace Period: The number of days (including the 1st) that a tenant can pay without incurring a late fee. For example, if the rent is due on the 1st and late after the 5th, set the Grace Period to 5. On the 6th, a late fee will be charged.
For a basic late fee setup, that is all you need.
2nd Fee Row
Complete the 2nd row of the table if you charge a second late fee, after the initial late fee. The fields are used the same way as the first late fee.
Note: The 2nd grace period is independent of the first. For example, if you want to set up a grace period of 5 days for the first late fee, and then another five days for the second late fee, enter 10.
Max Amount Row
Complete the Max Amount row if there is a cap on the late fees. The Amount and Type fields are used the same way as before. Breeze charges the Max Amount if the calculated late fee exceeds the Max Amount.
The Minimum Due amount refers to the amount of the charges that are past due. If it is less than the minimum, no late fee is charged. (Note: This field is in the same row as the Max Amount, but it applies to all late fees.)
$/Day Fields
Complete the $/Day field if you charge a fixed amount per day after the grace period. Max # Days is the number of days (after the grace period) that the tenant is charged the $/Day amount. (The $/Day calculation uses the first grace period only, not the second.)
You can use the $/Day method along with another method. For example, on the 5th, you charge a flat fee of $25, and starting on the 10th, you charge $10/day. The setup for this scenario would look like this:
The first Grace Period field always applies to the $/Day field, if it is being used. Because of this, you have to set up the flat fee amount in the second row, even though the charge is prior to the $/Day fee. The grace period determines which charge comes first. In the second row, you set a grace period of 4, meaning the flat fee will be charged on the 5th. In the first grace period, you enter 9, which means that the $/Day charge will start on the 10th.
Note: For Max # of Days, the system will allow you to enter any number from 0 - 31.
Due Day Field
The Due Day field is set to 1 by default, meaning that the charges are due on the first of the month, and late fees are calculated from the first. You can change the Due Day as needed; for example, you could make the charges due on the 15th.
For more information about the due day, click here.
Late Fee Types
% Owed–Total: Percentage of the tenant’s total outstanding charges which are subject to a late fee. This calculation will include unpaid charges from prior months.
% Monthly Rent: Percentage of the tenant’s scheduled charges which use a Rent type charge code.
Flat Amount: Fixed amount.
% Owed–Month: Percentage of the tenant’s outstanding charges which are subject to a late fee, from the current month only. No late fees are charged on outstanding charges from prior months.
Subject to Late Fees Check Box
When Breeze calculates late fees, it only looks at accounts that are flagged Subject to Late Fees. The Rent account is flagged by default. If you want to make other accounts subject to late fees, you will need to set the flag manually. To access accounts, go to Admin > GL Account.
To copy late fees from the property level to the tenants
Late fees are set up at the property level and the tenant level. When you add a tenant, the property-level setup is transferred to the tenant record, and you can modify it there, if needed. The actual late fees are based on the tenant-level settings.
If you change the late fee setup at the property level, the change is not passed automatically to existing tenants. To copy changes down to existing tenants, click the Copy button.
