Creating Late Fee Rules

Create Late Fee Rules:

In this article we will take you through the steps to be able to access, create / define fee details and view all rules that have been created. 

Once the fee rules have been created and activated, you will be able to view any calculated Late Fees in the Late Fees hub which can be accessed from the Dashboard.

 

Link to View late fees KB article: https://help-au.re-leased.com/hc/en-au/articles/6063167962900

 

Step 1:

Settings > Accounting >  Late Fees 

 

Optional Step: Create Bank Rate

Add bank rate details: 

View/ edit / archive bank rates:

For more Bank Rate FAQs please see article: Late Fees FAQs

 

Step 2:

The Late fees landing page will be empty the first time you enter this section.

• Select the "Add fee rule" on the top right to get started.

 

 

Step3:

Complete fields in the Create Rule form

• All fields with an * are all required fields

 

Step 3.1: Add fee rule name, and optional description

 

Step 3.2: Choose one of the 3 fee types

 

• Fee type 1: Flat fee - Charged once
  • The entered flat fee amount will be charged once, based on the COA and the over due invoice. The amount days overdue will not be considered

• Fee type 2: Percentage - charged once
  • The entered percentage will be charged once, based on the COA and the over due invoice. The amount days overdue will not be considered.

• Fee type 3: Annual percentage - charged daily 
  • This is an annual percentage calculated on a daily basis.
    • Amount of Days late divided by 365
    • Multiplied by (Daily percentage) + (optional - Bank Rate) 
    • Multiplied by Amount overdue

 

Step 3.3: Then if applicable choose a Grace Period:

• This is the number of days grace tenants have to pay after the invoiced due date. Interest will be calculated dating back to the due date if payment is not made within the grace period.

Step 4: Income Chart of Accounts: Select one of the following

• " All accounts including future accounts
  
  • Note: When selecting this option take into consideration that this will add "all" your COA's including "paid to" COA and may result in generating late fees on late fees.
• You also have to option to select the COA's from a select/searchable list.

 

Step 5: Invoice settings

 

Step 5.1: Choose a invoice template for the Late fees invoice sent to tenants

Step 5.2: Due date (days)

• Set the due date for the Late fee invoice, by choosing an amount days that the late invoice will be due after the invoice was issued.    

Step 5.3 Late fee paid to account

• The "Late fee paid to account" is the Chart of account is used for charging the the fee into. If you don't already have a Late Fees paid to COA it may suggested to create this before creating the fee rule, unless you already have a specific COA for this purpose 

Note: We automatically assign property Ledgers to rules based on tenants added, in the event that the property does not already have a ledger assigned to it, you will be notified to add one.

Note: Finally the blue banner is informational - "Late Fee invoice uses your company settings for Rent and Service Charge to generate invoices. You can change this, under manage Companies/Invoices settings."

Step 6: Add tenants to your fee rule

• You are able to navigate with the progress bar at the top of the page
• Search for tenants 
• Select all tenants
• or choose individual tenants with the check boxes

Note: You are only able to add current tenants to Late Fee rules, vacated and or future tenants will not be available to select from.  For vacated tenants, you may raise the late fee invoice manually or use a repeating income invoice template.

 

 

Step 7: Activate the late fee rule

 

 

Step 8:

Review and Edit the details of the fee rules you have created

• Fee Details
• Fee rules
• Income accounts
• Invoice settings 
• Add/remove tenants

NOTE: For any changes to the rules e.g percentage rates or bank rates, it is suggested to generate an interim late fee invoice before the changes.

 

 

Navigate to the Late fees hub: