From an Ask-NCN Discussion, 5/11/16
Katie Edwards, The Nonprofit Centers Network
We’ve gotten a request for more information about how centers collect fees on late rent payments.
1. Can you share your clause from your lease or license about late fees?
2. How much do you charge? Is it a flat fee or a percentage of rent?
Please share any insight you have into this process!
Alan Ziter, The NTC Foundation
See the clause below from our Lease Agreement that outlines Late Fees for late rent payment. We encourage any Resident Group that may need to pay late to notify us in advance regarding the circumstances as we want to work with them to stay current. This is more for those that casually or habitually pay late without notification.
“Late Charge: With the exception of Real Property Taxes paid as Additional Rent which carries a higher late charge pursuant to Section 13, if any payment due hereunder is not received by the 5th day after the date the payment is due, a late charge in the amount of 5% of the payment amount shall be charged to, and payable by, Resident Group.”
Nada Zohdy, OpenGov Hub
Our rent is due from tenant members on the first of the month but we always offer a one week grace period of them to get payments in. After that time a late fee takes effect, which is always 10% of the total amount due.
This is the stock language in our licensing agreements:
“Licensee shall pay all fees to Licensor on April 1, 2016, and by the first of each month thereafter. Licensor will offer a one-week grace period each month to collect license fees. If Licensee fails to make any payment of the License Fee by the seventh day of each month (after the one week grace period ends), then Licensee shall pay Licensor a late charge of ten percent (10%) of the amount of such payment.”
Pam Mauk, Together Center
Our clause says the following, and I don’t think in 26 years we have used it, although we have mentioned it a time or two.
4.3 Late Charge. If any installment of rent is not paid within ten (10) days of the due date, a late charge of five percent (5%) of the rents owed with a minimum of fifty dollars ($50) shall be added as additional rent. In the event that any installment of rent or any late charge is not paid in full on or before the thirtieth (30th) day of the month, interest on the unpaid amounts shall begin to accrue at the rate of eight percent (8%) per annum until paid in full.