Late fees help encourage timely payments and compensate for the administrative burden of collecting overdue invoices. Stortech allows you to configure automatic late fee application with a grace period.
Accessing Late Fee Settings
From your facility dashboard, click "Paramètres" (Settings) in the left sidebar. Click the "Frais de retard" (Late Fees) tab.
Late Fee Settings
Enable Late Fees: Toggle "Activer les frais de retard" to ON to enable automatic late fees, or OFF to disable them.
Grace Period (Période de grâce): The grace period is the number of days after the invoice due date before a late fee is applied. Standard facilities typically use 5-7 days. Premium facilities may use 3-5 days. Budget facilities often use 7-10 days.
Example: If the invoice is due February 1 with a 5-day grace period, the late fee is applied on February 6 if unpaid.
Important: The grace period cannot be changed once set. Choose carefully!
Fee Amount (Montant des frais): Enter the fixed dollar amount to charge as a late fee. Recommendations vary by rent: under $100 monthly rent suggests $10-15 late fee, $100-200 rent suggests $15-25 late fee, $200-500 rent suggests $25-50 late fee, and over $500 rent suggests $50-75 late fee. Check local regulations as some jurisdictions limit late fee amounts.
Setting Up Late Fees
Step 1: Toggle "Activer les frais de retard" to ON.
Step 2: Enter the number of days in the "Période de grâce" field (for example, enter 5 for a 5-day grace period). Remember this cannot be changed later!
Step 3: Enter the dollar amount in the "Montant des frais" field (for example, enter 25.00 for a $25 late fee).
Step 4: Click "Enregistrer les frais" (Save fees). A confirmation message will appear.
How Late Fees Work
When late fees are enabled, the process is automatic. First, the invoice is generated with a due date set. When the due date passes, the grace period begins. When the grace period ends, the late fee is automatically added. The customer is then notified and the late fee appears on their account.
Late fees appear as a separate line item with type "Late Fee" and your configured amount.
Legal Considerations
Late fee regulations vary by location. In Quebec, Canada, late fees are generally permitted but must be clearly disclosed in the rental agreement with reasonable amounts expected. In the United States, rules vary by state, and some states cap late fees at a percentage of rent. Fees must be disclosed in the lease agreement.
Best practices include: including the late fee policy in your rental agreement, clearly communicating fees to customers at move-in, and applying fees consistently to all customers.
Common Questions
Can I change the late fee amount later? Yes, the fee amount can be adjusted. Only the grace period is locked.
Why can't I change the grace period? This prevents confusion and ensures consistent treatment of all customers. The grace period you set becomes part of your contractual terms.
Are late fees applied automatically? Yes, when enabled, the system automatically adds late fees after the grace period expires.
Can I waive a late fee for a specific customer? Contact support for assistance with waiving individual late fees.
What if a customer pays during the grace period? No late fee is applied if payment is received within the grace period.
Need Help?
If you have questions about late fees, click the "Support" button in the sidebar or email [email protected].