Most of our Lease Agreements have a due date of the 1st day of each calendar month. Many tenants, however, incorrectly consider the "due date" to be the last day of the grace period. This can lead to undesirable outcomes for tenants.
Most California leases include a provision that defines the day upon which late fees begin to accrue. This period of days after the due date, but before the "late fee date", is called the "grace period". What does this really mean?
Rent Paid on or before the 1st of the month. This is an "on time" rent payment. Tenant is performing as agreed in the lease.
Rent Paid after the Due Date but before the end of Grace Period. This is a "late payment" for which no late fee is charged.
Rent paid after the 5th Day. This is a late payment for which a late fee is incurred. If we have to send an eviction notice before the tenant pays, this will cost him/her not only in late fees, but can negatively impact the tenant in other ways explained below.