Domi Vera

Set interest defaults

Set the late-payment interest terms new leases start from - rate, grace days, compounding.

Start: Settings›Interest Result: new leases inherit these terms.

Set this once for the company. Any individual lease can override it.

Steps

  1. Go to Settings›Interest.
  2. Set the rate - the annual percentage.
  3. Set grace days - how long after the due date before interest starts. 0 means the due date itself, so a payment must land on the day to avoid interest.
  4. Choose the compounding basis.
  5. Save.

What this does and does not change

Does: new leases start from these terms.

Does not: change any lease that already exists. Those keep the terms they were created with.

Grace days are the setting most often wrong. A grace of 0 is correct for some lease agreements and punitive for others - match the lease, not the default. Check what your agreements actually say.

See interest for how the calculation works and when it becomes final.

Related

  • How late-payment interest worksInterest is worked out automatically, stays editable while it is provisional, and locks in when you send the statement.
  • LeasesThe agreement tying a tenant to a unit for a period, at a rent. It is what billing actually runs from.