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A rental property invoice is a digitally sent or delivered bill that outlines the total monthly rent that one (1) or more renters are required to pay by the date specified in the invoice or lease agreement. If full payment is not made on time, the landlord or property manager can begin eviction proceedings unless otherwise specified in the rental contract. Rental invoices are uncomplicated in nature, and typically contain the contact information of the issuer and tenant(s), the rental period, full rent due, and the terms of the invoice.
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Property management companies and landlords generally charge late fees in one of two ways, flat fees or as a percentage of the rent. It should be kept in mind that some states pose limits on the late fees that can be charged, and the length of time that is required to pass before a charge can be applied. For a breakdown of each state’s laws on late fees and due dates, check out Nolo’s table here.
Flat fee – The fee that is charged should be relative to the rent cost of the managed properties. Anywhere from $20 to $100 is reasonable, with higher and lower amounts plausible in exceptional cases.
Percentage – To take the worry out of charging some tenants fees that are unfairly high or low, rental companies can issue late fees on a percentage basis. With this method, the late fee would be a percentage of the monthly rent. The typical fee is five to ten (5-10%) percent, although it is ultimately up to the landlord’s preference and the applicable state laws.