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.
- 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.
Article #: | 219139368 |