Operators tend to deal with delayed rental payments in the form of charging tenants late fees. Our system is capable of handling all the permutations and combinations associated with creating a custom late fee configuration that is best suited to the needs of an operator.
Why do you need a Late fee automation?
Currently, late fees are calculated manually for overdue invoices: Operators have several complex considerations based on factors like grace periods, late fee tiers, and potential exceptions based on which Late fees are calculated.
This calculation needs to be applied to all overdue invoices. Keeping track of this and applying it, can both be cumbersome and prone to error.
How we can help solve the problem?
Our system takes into consideration different factors based on which an operator might want to charge a late fee.
Let’s look at an example to understand this better:
ABC Property Management Ltd. would like to charge their tenants a 1% late fee on the total outstanding invoice amount on the 7th day of every month.
1.To do this, the company would create the Automation as follows:
- Select the Product/Service for which the Late Fee should apply, in this case, ‘Rent’
- Select the Late Fee Product, in this case, ‘Fine’
- Choose the Charge type, in this case, ‘Percentage’
- Apply the late fee on the ‘Total Outstanding Invoice’.
- Set the automation to charge 1% on the 7th of every month under automation type.
