Day 87: Late Fees and Enforcement: The profit Center

Описание: Do you treat late fees like a penalty or like a profit center?

In Day 87 of the Storage 100 series, Joe Downs breaks down why late fees are one of the most overlooked revenue drivers in self-storage.

Late fees aren’t just about punishment.

They are about training behavior and protecting cash flow.

Joe explains why industry standard late fees can represent 10–20% of total revenue and why inconsistent enforcement destroys your NOI.

You’ll learn:

• The standard late fee structure (Day 6 late fee, Day 30 lien fee)
• Why most states require zero grace period and why 5 days is the norm
• How long grace periods delay your cash flow
• How to automate enforcement at 12:01 AM on Day 6
• Why overlocking (the red lock) must happen immediately

Joe also covers the “one waiver per lifetime” policy and why habitual fee forgiveness trains tenants to pay late.

Plus:

• Why lien fees ($50–$100) are necessary and justified
• How late fees cover admin time and certified mail costs
• Why strict enforcement improves collections

The principle is simple:

Keep it automated.
Keep it consistent.
Never negotiate with your system.

Late fees equal profit.

Train your customers. Boost your NOI.

If you’re waiving late fees every month, this episode is your wake-up call.

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