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Handling a Late Payment

When a tenant misses a payment due date, follow this workflow to manage the situation consistently.

Prerequisites

Step 1 — Identify overdue payments. Find overdue payments in one of these locations:

tip

Use the Sort By Debt option on the Finance Overview tab to prioritize the largest outstanding balances.

Step 2 — Check the automated reminder status. If you have overdue reminder emails configured in Settings > Emails > Communication Module, verify whether a notification has already been sent to the tenant and when.

Step 3 — Contact the tenant. If automated reminders have not resolved the issue, contact the tenant directly. Many late payments are due to oversight — a quick message is usually enough.

Step 4 — Record the payment when received. Go to Finance > Add Payment, select the booking, enter the amount and payment date, and save. The system allocates it to the oldest outstanding charge first based on your payment priorities.

Step 5 — Apply a late payment penalty (if applicable). If your penalty policy in Settings > Payments requires it:

  1. Open the booking and click Add Charge (see Adding Extra Charges)
  2. Select "Penalty Fee" as the category
  3. Calculate and enter the penalty amount (e.g., 1% of the overdue amount per day late)
  4. Set the due date
Business Rule

Penalties are not automatically applied — they must be manually added as charges. The penalty configuration in Settings defines your terms, but you must create the charge yourself.

Step 6 — Escalate if unresolved. If multiple contact attempts fail, escalate through your standard collections process. Document all communication attempts in the booking's notes field for future reference.