How do I set up automatic late fees?
As part of rent collection, you can enable late fees to be automatically applied if your tenants' payments are not up-to-date when rent is due.
To enable automatic late fees, you can go to your Rental Details tab from an existing rent collection setup and click "Edit" next to the Rent section. From there, you'll be prompted to enable automatic late fees. When you enable late fees, you'll choose the fixed amount that you'd like charged, and a grace period.
When you're choosing a grace period, you'll see a drop-down menu labelled "Add A Fee," with options saying "# day after rent is due." For example, if rent is due on the 1st, and you choose to have the fee added "1 day after rent is due," the late fee would be added on the 2nd. If you choose "5 days after rent is due," the fee would be added on the 6th, and so on.
If your tenants don't have a total balance of $0 or lower on the date that rent is due, we'll email them to let them know that they need to schedule a payment for rent, or a late fee will be applied. At that point, your tenants have a chance to log in and schedule a payment to start processing within the grace period time.
If your tenants have a balance of more than $0 after the grace period, a bill for a late fee will be automatically added to your ledger. We'll email you and your tenants to let them know. Your tenants will need to login to Cozy to schedule a payment for their total balance due before their next rent due date to avoid incurring a late fee the following month.
It is important to make sure that the "Due Today" balance for the rent collection is $0 when automatic late fees are enabled. If it is any amount besides $0, we will be unable to determine whether the tenant is current in their payments, and the automatic late fees will not be applied, even if the tenant has not made their payment. If you are unsure of how to correct this, please contact Support for assistance.