Lease Payment Penalty?

Question

tenant pays $3300/ month. What is the penalty portion if the lease says 18%/year. He is currently 3 months late paying.

Answer 1

$445.50.

Answer 2

STOP.  READ the lease carefully.  Give the required legal notice in your state and start eviction proceedings immediately.  You have waited too long already, and the longer you wait, the more you will lose.  Stop listening to him and his problems, and put your interests front and center.  Sue for lost rent, all fees and late payment penalties in the lease, plus court costs and attorney fees.

First Rule of Landlording:  Be Fair, but it never pays you to be Nice.

Answer 3

Don't worry about how much the penalties should be - just evict them.

You should have started the eviction after the 1st month went unpaid.

After this tenant, I would re-write the lease so that the late fees are a little more clear.  It is best to have a concrete amount instead of a percentage. It is a lot easier for both parties to understand.