Helping Good Tenants Through a Tough Month

Why Waiving Late Fees Can Be Smart Business

The Two Types of Tenants We All Know

Every landlord and property manager eventually realizes something funny. You don’t just rent homes to people — you rent to personalities. And those personalities usually fall into two big groups.

The first group is the dependable crowd. The tenants who pay early, not late. The ones who treat their home like their grandma is coming over for dinner. They watch out for leaks, they call you when the AC makes a weird noise, and they say thank you when you send maintenance. These tenants are golden.

The second group… let’s just say they’re “creative” with deadlines. They pay when the spirit moves them. They can’t remember the due date even if it’s tattooed on their fridge. When they text you, you know you’re about to hear a story that starts with “You’re not gonna believe this, but…”

This article is not about those tenants.
This article is about the good ones — the people who show up, do the right thing, and then one month, out of nowhere, they fall behind for the first time.

When Good Tenants Hit a Bad Month

Today my team and I met to talk about exactly that situation. A few of our best tenants — people who normally make our lives easy — suddenly couldn’t pay on time. And not because they’re irresponsible. Life just hit them like a surprise pop quiz.

You know how it is.
Someone loses a few hours at work.
A car breaks down.
A medical bill pops out of nowhere like a jump scare.
And the domino effect begins.

Instead of assuming the worst, we did what good property managers do. We asked:
How can we help them recover without digging them into a deeper hole?

We weren’t interested in punishing them. We were interested in keeping them. Because losing a good tenant is bad for everyone — the owner, the management company, and the tenant themselves.

The First Idea: Remove the Late Fees

The first idea on the table was simple:
Remove the late fees so they can catch up faster.

We weren’t talking about waiving fees for chronic late-payers.
We weren’t talking about giving gifts to people who ignore the lease.

We were talking about responsible people who, for the first time in years, slipped.

These are the ones who deserve a little grace. Not a free ride — just a fair path back to normal.

Late fees stack up fast. And when someone is already struggling, throwing more fees at them feels like adding extra weights to a person who’s trying to climb out of a hole. It slows them down, not speeds them up.

Removing late fees gives them a clean runway to catch up. That is good for them. And it is good for us.

But before we just waived anything, we needed to be sure we weren’t stepping outside Florida law. So I dug back into the rules.

Checking Florida’s Late Fee Rules (Plain English Version)

Whenever you touch fees, you better know the law.
But the way Florida writes rules sometimes feels like they were trying to win a puzzle competition.

So here is the simple version.

Florida does not set one universal number for late fees on residential rentals.
There is no statewide maximum like “You can only charge $50” or “You can charge exactly 10%.”

Instead, Florida uses one big word:
Reasonable.

That word does a lot of heavy lifting.

Florida also gives us a guideline from similar statutes — twenty dollars or twenty percent of the rent is considered reasonable. It’s not a hard cap. It’s more like the state saying:
“Hey, stay around here and you’ll be fine.”

So if you’re charging a $75 or $100 late fee, courts usually see that as normal.
If you’re charging $350 on a $1,200 rent?
Now the judge starts looking at you like you tried to sell them a $20 hot dog at a baseball game.

Why Judges Dislike Compounding Daily Fees

One thing Florida judges absolutely hate is compounding late fees — the kind where you charge a fee for being late, then charge another fee for the fee, then charge another fee for the next day, and so on.

It reminds them of payday loans.
It feels predatory.
And it rarely holds up in court.

Most property managers already know to avoid that. But it’s worth repeating because this is exactly where landlords get in trouble.

Late Fees Should Encourage Payment, Not Punish

Late fees serve one purpose:
To encourage tenants to pay on time.

They are not meant to punish.
They are not meant to make money.
They are not meant to trap someone who is already having a hard month.

If your late fee structure makes it harder for a good tenant to recover, you’re doing the opposite of what a late fee is supposed to do.

And this is exactly why my team talked about waiving fees today. Not permanently. Not as a habit. But when someone who has been wonderful for years suddenly slips once.

That is when smart landlords bend, not break.

Why Helping Good Tenants Is Good Business

This part is almost funny because it feels backwards at first.

You would think charging the late fee helps you make more money.
But in reality, keeping the tenant long-term makes far more.

Think about it.

When a good tenant stays:

• You avoid vacancy
• You avoid repainting
• You avoid turnover costs
• You avoid advertising
• You avoid training a brand new tenant
• And you avoid all the drama of replacing someone who already takes care of the home

Waiving a $75 late fee today can save you $2,000 tomorrow.

That’s not generosity.
That’s strategy.

This is the same logic banks use when they forgive fees for customers with a perfect history. They’re not trying to be nice. They’re trying to keep great customers.

Property Management Isn’t Just Rules — It’s Judgment

A lease is black and white.
Life is not.

Being a good landlord means understanding when to enforce the rules and when to apply judgment. You’re not running a vending machine. You’re running a business that deals with humans.

Some tenants need strict rules.
Some tenants need flexibility.
Your job is knowing the difference.

Today, our team looked at the tenants who pay on time, who take care of their homes, who never create drama — and they simply had a tough month.

We said:
These tenants have earned understanding.

Why We Chose to Waive Late Fees This Month

At the end of the meeting, the decision was clear. We chose to waive late fees for several tenants who fell behind for the first time in years — but have always been responsible, respectful, and reliable.

It wasn’t about being soft.
It wasn’t about giving away money.
It wasn’t about breaking policy.

It was about protecting:

• Our owners
• Our cash flow
• Our tenant relationships
• Our long-term occupancy
• And the health of the portfolio

A good tenant who becomes frustrated and moves out is expensive.
A good tenant who feels supported stays.

And that is the entire point.

What Every Landlord Should Remember

If you take nothing else from this article, take this:

Late fees should help the tenant catch up, not push them further behind.

And when a tenant has proven — for years — that they are solid, reliable, and responsible, then showing them understanding during one tough month is not a risk.

It is a smart investment.

I’ve managed thousands of doors and seen every scenario imaginable. The landlords who succeed long-term are not the ones who squeeze every dollar out of every moment. They are the ones who build long-term stability through fairness, consistency, and good judgment.

Treat your good tenants well, and they will take care of your property, your income, and your peace of mind.

That’s how you win in this business.

Keep it consistent, stay patient, stay true—if I did it, so can you. This is Jorge Vazquez, CEO of Graystone Investment Group and all our amazing companies, and Coach at Property Profit Academy. Thanks for tuning in—until the next article, take care and keep building!

If you’d like to connect directly with me, feel free to book a time here:
https://graystoneig.com/ceo

Book an Expert

New investor? Start with Jorge.

Jorge Vazquez – CEO & Investment Strategist at Graystone. Let’s make your portfolio stronger, steadier, and more profitable.

Deals? Book with Cody.

Meet Cody Bergstrom, Your Expert in Finding Deals Let’s find an off-market deal that actually works for you.

Need financing? Book with Lisa.

Meet Lisa Kaye Price, the LendingGig Top ML Let’s figure out the smartest way to fund your next deal.

Looking for PM? Book with Jay

Jay Michalec – COO & Property Management Expert at Graystone. Let’s make your rentals easier, calmer, and more profitable.