Hi, there! Joe White here from Grow Property Management, your trusted property management company in Philadelphia.
As a property management company owner, I often get asked about waiving late fees, and I want to clarify that we generally do not waive late fees. While I understand that tenants often reach out to request fee waivers, it’s important to recognize that waiving late fees comes with significant legal risks, particularly concerning fair housing laws. While I empathize with tenants who may have valid reasons for their late payment, offering exceptions can lead to accusations of discrimination, even if that’s not the intent.
For example, if you waive a late fee for one tenant and not another, a governmental agency, like Fair Housing, could claim that you’re favoring one group over another based on factors like ethnicity, religion, or sexual orientation. This creates a liability risk, as those differences could be scrutinized, leading to potential legal actions.
If you absolutely feel the need to waive late fees, it’s essential to have a clear, standardized, and written policy that applies equally to all tenants. Consistency is key, as deviation from this policy can expose you to legal challenges. Even if you’re acting in good faith, the legal perspective often doesn’t focus on what’s right or wrong, but rather on liability.
In our case, we rarely waive late fees unless it’s due to a mistake on our part. Moreover, it’s important to remember that property owners are entitled to the late fees, as they help cover operational costs. If we think about other bills—like car payments or credit card bills—no one waives late fees, even if you have a good reason for being late. Tenants should also make it a priority to pay their rent on time. While I don’t mean to say tenants are bad decision-makers, allowing late payments to slide can lead to a pattern of chronic lateness, which is problematic.
To sum up, I recommend that you follow a policy of not waiving late fees unless absolutely necessary and, if you do, ensure it’s well-documented and applied consistently. Deviating from that policy can create significant problems. I’m just trying to provide honest advice from my experience as a property management company owner here in Philadelphia.
Happy investing!
