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late fee is maximum legal rate which is 1.33% per month and yet our coop charges 5% - what to do ?
Bingy - that was not the question. sometimes even the best intended are a few days late.
The Proprietary Lease must be amended to include a late fee clause with the amount that would be charge, i.e., a percent amount or a fixed amout such as $50.
However, your co-op needs the money to pay bills and provide you with basic services as well as pay the salary of those who take care of the buildingd. If the rent is due on the 1st of each month and you have 10 days grace period to pay your rent, I would suggest to do your best effort to pay on time. If for some reason you are experiencing a problem, approach the Board with a letter explaining the issues you may have so that a greater period of time is considered in your case. If this is the first time you are late, then request a waiver. It usually works!
The Proprietary Lease must be amended to include a late fee clause with the amount that would be charged, i.e., a percent amount or a fixed amout such as $50.
However, your co-op needs the money to pay bills and provide you with basic services as well as pay the salary of those who take care of the buildingd. If the rent is due on the 1st of each month and you have 10 days grace period to pay your rent, I would suggest to do your best effort to pay on time. If for some reason you are experiencing a problem, approach the Board with a letter explaining the issues you may have so that a greater period of time is considered in your case. If this is the first time you are late, then request a waiver. It usually works!
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We had a similar issue late last year. We were charging a punitive late fee (which worked - we even had early payers). However, it was pointed out that our Lease only called for "Late Interest". As a result, we changed to conform to the lease language until such time as we can amend the Lease. Specifically, we changed all future charges to late interest and adjusted the unpaid late fees to later interest. We did not address paid late fees and no one has raised it.
I suggest that you first point this out to the Board and ask them to change it. If not, then talk to a lawyer.
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