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Collecting Late Fee's!

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  • Collecting Late Fee's!

    Hello All.

    One of our facilities is having a problem with late fees lately. Too many are being waived and customers have now became comfortable with paying their rent late.
    All rent is due on the 1st of each month, and we do give a 6 day grace period before a $15 late fee is applied to their account.

    Besides getting the managers on board with not waiving late fees, I was thinking of sending out a mass email to the tenants to remind them that rent is due on the 1st of each month.. and basically that we are no longer waiving late fees.

    Do you think the email is unnecessary, and we should just try to get the managers on board.. or do you have any wording suggestions that I could send out in an email?

  • #2
    You can send out an email but in reality the managers have created a monster, as I said will happen when this is done, many times. If the agreed upon lease is just followed then you don't have to think about it. You will get thrown back in your face, "why did you credit before and not now".
    "Never let the inmates run the asylum!"

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    • #3
      Well, def get managers on board. I'm of two minds, one, 'Too bad so sad', but from the customer service perspective, "WE value you as a tenant. Our policy is one late fee waived, PERIOD. Your last late fee waived was May, 2018. Please note this for further payments." or something to that effect. I don't think sending out an 'all call' is necessary. If they continue to complain, tell manager to forward the tenant to you. (or whomever wants to handle the whining)
      I was born to be wild, but only until about 9:00 pm.

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      • #4
        We also have warehouses that we rent. The tenants knew we put the fees on the after noon of the 6th and they would come in that morning. Then the property managers figured out how to post late fees automatically. They were posted the morning of the 6th. There was a lot of commotion and upset tenants because no one said they would be posted early.
        We created this mess because the property managers didn't enforce the rental agreements. I would send an email that late fees will no longer be waived if payment is late.
        Also maybe raise the fee if you can.. In Washington we can charge $20.00 or 20% of the rent, whichever is smaller.
        I don't have that problem here at the mini storage because I don't waive fees and the tenants know it.
        Janice - Maxi-Space Storage and Business Solutions

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        • #5
          If you have the owners backing, go in there with the amount of money the manager has waived over the last quarter. Ask the manager if they know what that money equates to. Let them know that going forward, every late fee that is waive, will count dollar for dollar against any incentive/bonus. The only exceptions to this will be 1st time late fees. That will usually wake your manager up.
          Chasing Perfection to catch Excellence

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          • #6
            I don't have the problem at the facility I manage what-so-ever, and that is all because I never started doing it. I will waive their late fee one time, and I let them know when I waive that late fee that it is the one and only time I will do it. I think instead of sending out a mass email, I am just going to focus on getting the managers on board. Late fee's may only be waived one time, and after that there are none allowed. As for their current customers who always get late fee's waived they can contact me! This has gone on too long.

            Thanks for the input

            But, Jlemke if I do decide to send out a mass email, I'm not even sure how to word it:

            Dear "Customer",

            This is a friendly notice that we will no longer be waiving late fees. We email a courtesy invoice two weeks before payment is due.

            Please remember rent is due the 1st of each month. We do give a 6 day grace period before a $15 late fee is applied to the account.

            You are more than welcome to pay online at our website, or mail in a check... (something like that).

            ???
            Any other ideas?

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            • #7
              "In the past the facility had waved late fees for numerous reasons and that practice will now cease. If a legitimate reason is given, for a first time late fee credit, then that is handled on a case by case basis, one unit at a time. Moving forward there will be no late fees waived without prior approval".
              "Never let the inmates run the asylum!"

              Comment


              • #8
                Originally posted by psconroe View Post
                I don't have the problem at the facility I manage what-so-ever, and that is all because I never started doing it. I will waive their late fee one time, and I let them know when I waive that late fee that it is the one and only time I will do it. I think instead of sending out a mass email, I am just going to focus on getting the managers on board. Late fee's may only be waived one time, and after that there are none allowed. As for their current customers who always get late fee's waived they can contact me! This has gone on too long.

                Thanks for the input

                But, Jlemke if I do decide to send out a mass email, I'm not even sure how to word it:

                Dear "Customer",

                This is a friendly notice that we will no longer be waiving late fees. We email a courtesy invoice two weeks before payment is due.

                Please remember rent is due the 1st of each month. We do give a 6 day grace period before a $15 late fee is applied to the account.

                You are more than welcome to pay online at our website, or mail in a check... (something like that).

                ???
                Any other ideas?
                That is a great way to word the email. Then get the manager on board. I only waive the fee if they pay the day it is put on. We go by anniversary dates here so mine are due all the time.
                Janice - Maxi-Space Storage and Business Solutions

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                • #9
                  Hi pcsconroe,

                  In my opinion, I think finding out the source of the problem should be the first step. If you can isolate the waived fees to one particular manager and they aren't "getting on board" you can remove the ability to waive fees for that particular manager (depending on your software).

                  I'm hoping the email will do the job, but depending on how severe the issue has become it may help one month and be forgotten the next. I would be friendly, but clear in the email regarding your policies so your managers can cite the email as needed. It may help to print out a copy and post it in the office as well.
                  Kevin Kerr
                  Self Storage Software by Storage Commander
                  Kevin@storagecommander.com
                  Direct - 951.867.4732

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