AppFolio Tutorials - Ep. 9 How to waive and remove a late fee charge that was posted in error

Hello everyone, and welcome to APM Academy. In today’s video, we’ll cover late fees and how to waive or reimburse them if needed.

Example: Bilbo Baggins has his August rent charge posted. He has not paid and is now 4 days late. Per the late fee policy, we charge $50 on the 4th day of the month when rent is unpaid.

Sometimes a tenant receipt may improperly apply to a late fee charge, requiring a reimbursement or reversal. Here’s how to handle it.

Steps to Waive a Late Fee

1. Go to the tenant page.
2. Click Tasks → Enter Credit.
3. Enter the amount of the late fee to waive (e.g., $50).
4. Set the credit date to match the date you are waving the late fee (e.g., 08/06/2024).
5. Select the GL account for late fees.
6. Click Save.

Once saved:

• The tenant’s balance will update to zero.
• The Tenant Ledger will show:
  • Rent charge
  • Original late fee
  • Tenant receipt
  • Credit applied from the late fee GL account

Important Notes

• Keep track of waived late fees: if marked as paid, the system may include them in management fee calculations.
• Monitor the Diagnostics page under the positive balance of the additional fee GL account to ensure everything is correctly accounted for.

This completes the process to waive or remove a late fee posted in error.

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