Here’s a recent question from one of the members of INreia– the Indiana Real Estate Investor Association, which meets monthly- SECOND TUESDAY- in downtown Indianapolis.
QUESTION- I am a friend of Amy Siewe’s and I have attended a couple of the INREIA meetings as well. I was wondering if you could answer a quick question for me regarding collecting late rents from tenants. I have a tenant who is late on rent and owes a $75 late fee. If I accept the rent without the late fee, will I legally be unable to pursue the $75 late fee in Indiana?
ANSWER- No, you can collect the rent and add the late fee to the unpaid balance owed. Just communicate that intent to the tenant, and don’t accept any “paid in full” check. Eventually, take the late fee out of the security deposit.