Determine if the late fee should be calculated as interest or if it should be a flat percent.

The calculation when the Late Charge type is Interest:

Open item amount * interest rate % / 365 * number of days

To setup late charge based on interest:

1. In Change Lease on the Late charges tab, select the late charge Step tab to set up.
2. Mark the Active check box.
3. Select the Late Charge type as Interest.
4. Click the ...> button to the right to select the following options:
   • In the Start interest on day box, enter the day to begin charging interest on late open items or accept the default of 1.
   • Enter the Maximum Days if there is a maximum number of days interest can be charged.
5. Select the Calculation type:
   • Select Percentage if it is based on a flat percent. Click the ...> button to the right to enter the Percent.
   • Select Interest Rate if it is based on a particular bank's or financial institution's interest rate. Click the ...> button to the right to select the Interest Rate to use. These rates can be entered in Setup, Interest Rates. Refer to How to set up or change Interest Rates in Property Management 
6. Select the Grace Period type as Grace Days. Click the ...> button to the right to enter the number of Grace Days before an open item is considered late.

The calculation when the Late Charge Type is Fee with Calculation Type of Percentage:

Open item amount * percent

To setup late charge based on a flat percent:

1. In Change Lease on the Late charges tab, select the late charge Step tab to set up.
2. Mark the Active check box.
3. Select the Late Charge type as Fee.
4. Click the ...> button to the right to select the following options:
   • Frequency: Daily, Monthly, or Every x days.
   • Repeat Factor: Any Delinquent Chgs, Once/Delinquent Pmt, Once/Delinquency.
   • Enter the Maximum if there is a maximum number of times it can be charged.
5. Select Calculation type as Percentage. Click the ...> button to the right to enter the Percentage rate.
6. Select Grace Period type as Grace Days. Click the ...> button to the right to enter the number of Grace Days before an open item is considered late.

Property Management Late Charges