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Late Fee Policy

Configure automatic late fees for overdue assessments. Late fee policies help encourage timely payments and ensure fair, consistent enforcement across your community.

Understanding Late Fees​

A late fee policy defines:

  • When late fees apply (grace period after due date)
  • How much the fee is (flat amount or percentage)
  • Limits on total late fees per charge
  • Notifications to warn residents before fees apply

Configuring Your Policy​

  1. Go to Settings in your board portal
  2. Find the Late Fees section
  3. Configure your policy:

Enable/Disable​

Toggle the late fee policy on or off. When disabled, no late fees are automatically applied regardless of other settings.

Grace Period​

  • Grace Period Days: Number of days after the due date before a late fee is applied
  • Example: A 5-day grace period means a charge due on the 1st won't incur a late fee until the 6th

Fee Amount​

Choose how to calculate the late fee:

Flat Fee​

A fixed dollar amount regardless of the charge amount.

  • Fee Amount: The flat dollar amount (e.g., $25)

Percentage Fee​

A percentage of the outstanding balance.

  • Fee Amount: The percentage to apply (e.g., 5%)
  • Minimum Fee: The minimum late fee charged (e.g., $10 minimum even if 5% is less)
  • Maximum Fee: The maximum late fee charged (e.g., $100 cap even if 5% is more)

Example:

Charge AmountFee TypeRateMinMaxLate Fee
$200Percentage5%$10$100$10 (5% = $10)
$500Percentage5%$10$100$25 (5% = $25)
$3,000Percentage5%$10$100$100 (capped)
$200Flat$25--$25

Fee Limits​

  • Max Late Fees Per Charge: Limit how many late fees can be applied to a single charge
  • Example: Setting this to 1 means only one late fee per charge, even if it remains unpaid for months

Notifications​

Help residents avoid late fees with advance warning:

  • Send Overdue Notifications: Enable email reminders about upcoming late fees
  • Notification Days Before: How many days before the late fee to send the reminder
  • Example: Setting this to 3 days sends a reminder 3 days before the late fee would be applied

How Late Fees Are Applied​

When a late fee policy is enabled:

  1. The system monitors all unpaid charges past their due date
  2. After the grace period expires, a late fee is calculated
  3. A new ledger entry is created for the late fee
  4. The late fee appears on the resident's statement
  5. If notifications are enabled, residents receive advance warning

Best Practices​

  • Be transparent: Communicate your late fee policy to residents before implementing
  • Use grace periods: Give residents reasonable time to pay before fees apply
  • Set reasonable limits: Consider capping fees to avoid excessive accumulation
  • Enable notifications: Help residents avoid fees with advance reminders
  • Review regularly: Ensure your policy aligns with your governing documents and state regulations
caution

Late fee policies should comply with your HOA's governing documents (CC&Rs, bylaws) and applicable state laws. Some jurisdictions limit late fee amounts or require specific notice periods.