Insufficient Notice Fee

What is an insufficient notice fee? Simply put, it’s an acceleration of rent due for giving a notice that does not meet the necessary lease protocol.

I am back for the weekly (save last week – vacation) budget installment. I took some time off last week and completely (save a pic post here and there) unplugged. All I can say is – DO THIS. Give yourself three to five days off every quarter and get away from everything. It’s good therapy. So – this week we are talking about the Insufficient Notice Fee.

Insufficient Notice Fee Defined

What is an insufficient notice fee? Simply put, it’s an acceleration of rent due for giving a notice that does not meet the necessary lease protocol. For example, Mills Properties requires a 60 day notice prior to move-out. If a full 60 day notice is not given, Mills charges for any days short of that notice period. Give a 30 day notice and they charge for 30 days beyond that. Give a 45 day notice and they charge for 15 days beyond that.

Budget Strategy

The Insufficient Notice Fee is a line item that you can budget based on twelve to twenty-four months of trailing information. The frequency is random so there is a real chance that you could budget for four based on your trailing information and end up with two or six. You will likely never be precise with this number. In the same respect you will likely never be too far off.

It’s short and sweet this week. And, it’s hot in #STL.

Your trying to keep cool in the 100+ temps multifamily manic,

M

 

Author: Mike Brewer

Out to put a dent in the multifamily universe. Love compelling conversation...