This help article explains how to configure and manage late fee settings in MagicDoor.

Inside, you’ll find:

• Where to access late fee settings in your account
• How to enable or disable late fees and set grace periods
• How minimum balances and fee types affect late charges
• How to control which charges incur late fees
• How late fee calculations and frequencies work
• How to apply late fee overrides at the portfolio, property, or lease level

Use this article as a reference when setting up or adjusting late fee rules across your portfolio.

Step 1: Open Late Fee Settings

Late fee settings are managed from the Settings section.

• Go to Settings
• Scroll down to the Property section
• Select Late Fees

MagicDoor includes default settings that work for most use cases and can be adjusted at any time.

Step 2: Enable Late Fees and Set a Grace Period

Control whether late fees are charged and when they begin.

• Charge Late Fees
  • Enable to apply late fees
  • Disable to stop all late fee charges
• Grace Period
  • Set the number of days after the due date before late fees apply
  • Commonly set to 4 days to allow for ACH processing time

Step 3: Set Minimum Balance and Fee Type

Define when and how late fees apply.

• Minimum Outstanding Balance
  • Set a minimum balance (for example, $100) before late fees apply
  • Set to $0 to charge late fees on all balances
• Late Fee Type
  • Company Bill: Fee is income to the property manager and does not appear on owner statements
  • Property Bill: Fee is income to the property and appears on owner statements
• Select the Chart of Account for late fees
• Add a Description (this is what tenants will see)

Step 4: Include or Exclude Charges From Late Fees

Choose which charges late fees apply to.

• Include Chart of Accounts
  • Select charges you want late fees applied to (for example, rent)
• Exclude Chart of Accounts
  • Exclude charges like repairs or other non-rent items if desired

This ensures late fees are only applied to the appropriate charges.

Step 5: Set Late Fee Frequency

Control how often late fees are charged.

• Charge Once
• Charge Daily
• Charge Monthly

Always ensure your late fee frequency complies with local and state regulations.

Step 6: Choose a Late Fee Calculation Method

Select how late fees are calculated.

• Percentage
  • For example, 5% of the outstanding balance
• Fixed Amount
  • A flat fee (for example, $5 per late charge)
• Percentage with Minimum
  • For example, 5% with a $25 minimum
• Formula
  • Create custom formulas using available variables for advanced calculations

For complex formulas, contact support for guidance.

Step 7: Save Late Fee Settings

After configuring all options:

• Click Save

Late fees will now be applied automatically based on your settings.

Step 8: Add Late Fee Overrides (Optional)

Overrides allow you to apply different late fee rules to specific portfolios, properties, or leases.

• Open the Portfolio, Property, or Lease
• Scroll to Late Fee Overrides
• Adjust settings as needed (for example, change from 5% to 10%)
• Save your changes

Overrides take precedence over global late fee settings.

Need Help With Late Fee Configuration?

If you have questions about late fee rules or need help setting up complex calculations, our support team is happy to assist.

👉 Contact us anytime at support@magicdoor.com