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

In Property Management - Asked by Joe G. - Nov 11, 2016
Report Abuse
Answer this Question


Richard L.
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
Report Abuse
Glen W.
Lender/Mortgage Broker
Atlanta, GA

in leases that I have seen there is a specified late fee per month, for example a 10% late fee for the respective month if not paid by the 10th. I have not seen commercial leases with a per annum late fee as rent is due each month typically not an annual rent payment

Aug 1, 2017
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question