How to calculate 18% per annum interest due on late rent.

In Property Management - Asked by Joe G. - Nov 11, 2016
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Richard L.
Owner/Investor
Burlingame, CA

The exact answer will depend on the specific terms agreed-to by the parties, but the easy answer is that you can just add 1.5% each month and compound the total past-due balance monthly. If a tenant is a full year late, more than 18% will have accrued, but if rent is due monthly, you are probably well within your rights to compound monthly. That's what banks do with credit card debt and late charges, after all.

Nov 11, 2016
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