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Understanding Late Rental Payments: What You Need to Know

 At WH Realty Company, we understand that life doesn't always go as planned. However, when it comes to rent, it's important to stay informed about the process and the potential consequences of late payments. Here’s everything you need to know to manage your rental obligations effectively.

1. Due Date & Grace Period

Rent is typically due on the first of each month, and we offer a seven-day grace period. If payment is made within this window, no late fees will be applied. However, after the grace period, late fees will automatically be added to your balance and are non-refundable.

2. Late Fees

Once the grace period has passed, late fees will be assessed as either a flat fee of $50 or 5% of the unpaid balance, depending on the terms outlined in your lease. Since these fees can accumulate quickly, it’s best to avoid delays whenever possible.

3. Communication is Key

If you're experiencing a temporary financial setback, it's crucial to contact us as soon as possible. Open communication can often help prevent unnecessary complications. While we may not always be able to waive fees or delay payments, we are more than willing to discuss your situation and explore potential solutions.

4. Partial Payments

Some tenants may assume that making a partial payment will avoid late fees. Unfortunately, unless otherwise arranged, partial payments do not prevent late fees or other consequences. Full payment of rent is required to meet the terms of your rental agreement.

5. Legal Consequences

Repeated late payments or non-payment can lead to more serious repercussions. In some cases, this could involve legal action, eviction proceedings, or a Notice to Terminate your lease. It’s important to stay current on rent to avoid these outcomes and the associated stress of losing your rental home.

6. Payment Options

To make paying on time as convenient as possible, we offer several payment options. Whether you prefer online payments, direct deposit, or checks, you can choose the method that works best for you. You can find more details by logging into your tenant portal.

7. Tips for Preventing Late Payments

To avoid late payments, consider setting up automatic payments or calendar reminders. Prioritizing your rent payment will help you steer clear of late fees and maintain a positive rental record.

Your Rights Under Colorado Law

Colorado Revised Statute (CRS) 38-12-105, enacted in 2021, provides tenants and mobile homeowners with several protections regarding late fees:

  • Late Fee Limits: Landlords cannot charge late fees that exceed the greater of $50 or 5% of the overdue rent.
  • Timing: Late fees cannot be charged unless rent is at least seven days overdue.
  • Disclosure: Late fees must be clearly outlined in your rental agreement.
  • Notice Requirement: Landlords must provide written notice of late fees within 180 days of the missed payment.
  • Eviction Protections: Landlords cannot evict or terminate a tenancy solely based on late fees.
  • Interest and Multiple Charges: Landlords cannot charge interest on late fees or apply multiple late fees for the same overdue payment.
  • Payment Allocation: Rent payments cannot be applied toward late fees before the rent balance is paid.
  • Subsidized Rent: Landlords are prohibited from charging late fees for rent amounts owed by a subsidy provider.

Final Thoughts

Late rent payments can lead to additional costs and unnecessary stress. If you find yourself in a financial bind, the best course of action is to communicate with us as early as possible. We're here to help, but staying proactive and informed is key to avoiding complications.

- The Real Estate Shark

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