Adding Late fee policies makes it easy to handle delinquent residents. You can automatically charge a late fee when a resident is past due and notify them by email.
Buildium can calculate late fees at a global level, by property or association, and by lease. The most specific policy always takes precedence.
You need to set up a global policy first, then enter the more specific policies when necessary.
- Click here to learn how to set up a property late fee policy
- Click here to learn how to set up an association specific late fee policy
- Click here to learn how to set up a lease specific late fee policy
To set up a global late fee policy:
- Navigate to Settings > Application Settings
- Click Residents.
- Scroll down, and select Add late fees.
- Choose a late fee type by checking the box for a one time late fee, a daily late fee, or both. Once selected, specify the amount to be charged.
For example, if you only charge late fees on rent income, you'd want to check the box to Only charge fee if there are outstanding balances on specific accounts.
If you only charge a late fee if the balance is over $100, check Only charge fee for balances over a certain amount.
If you select a daily late fee and want to set a cap on how much a resident is charged, select Set maximum monthly charge.
- Once you've set your late fee limits, you need to choose a grace period. A grace period tells Buildium how many days you want between when the payment is due and when the late fee charge posts.
The day the payment is due does NOT count as a grace period day. If a payment is due on the first of the month and you want the late fee charge to post on the fifth, you need to enter the grace period as 3 days. The second, third, and fourth of the month are the grace period days, and the late fee charges on the 5th.
- Choose a fee income account. You can choose for all late fee payments to go to Late fee income, or split the late fee payments between different general ledger accounts.
This is helpful if you split the late fee income with the property owner.
- If you want an past due notice email to be sent to residents when a late fee charge posts, check the box to Email residents when late fee is applied.
If you're just getting started with Buildium, it's recommended to keep this option turned off until you've fully entered all of your data and are ready to go live.
- When you're done filling out the form, click Save.