Late Fees

[Owlectrician]

Hey guys. On a lot of resources I listen to/read they talk about late fees for rent arrears. I was wondering, is this was legal in NZ (residential and/or commercial)? If so, whats involved with establishing them. Thanks.

[Keys]

Not legal for residential.

[PC]

What about early payment discount?

[Keys]

As my first post.

[ATandGT]

What about early payment discount?

You can offer it (in residential) but the tenant does not have to perform, and would still be entitled to the discount. In short; don't go there. It could also constitute a breach for requiring payment before the current paid period has runout.

[Owlectrician]

Thanks for that, I didn't think it was legal in residential at least. Is it the same for commercial?

[Wayne]

Is it the same for commercial?

What ever you want, can get in the contract and get signed by all parties.

[BigDreamer]

Not legal for residential.

Even if it was written and initialled as an additional clause on the tenancy agreement (under the "The landlord and tenant agree that" section)?

(I'm asking out of curiosity)

[Keys]

Even if.....

Not legal for residential.

Have a lookie here:

And this covers the contract signing situation.

[TomW]

Your own clauses/terms cannot override the residential tenancy act

[Damap]

It's a USA thing. PM's make more out of late fees than almost anything over there. It's ridiculous how much cash they make in poorer areas out of it.

[Anthonyacat]

Allowed in the UK, too. Late fees, and interest on overdue rent!

I so wish I could charge interest on overdue rent here. Currently collecting $2,500 in arrears at $30 per week, meanwhile I'm borrowing that money from ANZ. Why can't I pass on my costs? Not fair.