Why do we offer a grace period? Do we do it that way because that is the way it’s always been done? Because it is standard in the industry? I see it as enabling bad behavior.
I do assume there are property management companies out there that charge late fees on the second if rent is not paid. I would like to hear from you – do you see it as a hinderence to your business?
What does our community think? Leave us a comment.
And, have a compelling weekend. M
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My company started eliminating our grace period at all of our new lease-up projects in Atlanta (currently 3 properties; 1 in Midtown Atlanta and 2 in the Perimeter Center area north of Buckhead). Rent is due on the first and considered late if not received by the first. There is a $200.00 late fee if paid late.
At first I wasn’t sure how this would work, but we haven’t had any complaints and our delinquency is actually lower than normal at those properties. Part of it might be attributable to the type of residents we attract in the areas the properties serve and at our higher than average price point, but to me it really boils down to instructing your residents on what you expect. Sitting down and clearly explaining their lease when they move-in is a big reason why this works.