Pay rent on time to avoid having to pay interest

We have gone back to the normal practice of charging interest for late payment. We will send out the first invoices for interest for late payment in August. They will be for the period 1 April–30 June 2024. The interest rate for late payment is based on the Interest Act and confirmed by the Bank of Finland twice a year. The current interest rate for late payment is 11.5%.  

What does charging interest for late payment mean? 

• If you do not pay rent on time, you will have to pay interest for late payment. Rent is due on the 4th day of each month or, if the due date falls on a mid-week holiday or the weekend, on the following working day. You have to pay interest for late payment until the day you have paid all your rent. The policy is based on section 5 of the Interest Act.
• We will charge interest for late payment even if you have a signed a payment agreement for the unpaid rent.
• We will send out invoices for interest accrued in August (for the period 1 April–30 June), in October (for the period 1 July–30 September) and in January (for the period 1 October–31 December). 
• In the future, we will invoice interest for late payment four times a year. We will send the year’s first invoices for interest for late payment in April (for the period 1 January–31 March).
• If the amount of interest for late payment is smaller than five euros (EUR 5), we will not send an invoice. 
• We will send out invoices for interest for late payment by post. You can also view the invoice details in EAsy, the online service for residents, where you can pay interest for late payment and any other open invoices at the same time.

Plan your finances – always pay rent first

People are sometimes late in paying the rent, but that gets expensive in the long run. The only way to avoid paying interest for late payment (or the reminders that we send when the rent is 14 days late) is to pay the rent on time. If we must send a reminder, we will charge a reminder fee of EUR 5. 

Here are some tips to help avoid extra costs:

• Check the status of your rent payment in EAsy: Have you already checked out EAsy, our online service? You can easily check the status of your rent payments in EAsy anywhere and anytime!
• Plan ahead: Once you know when the rent is due and how much it is, plan your other monthly expenses accordingly.
• Activate e-invoices: You can easily activate e-invoices in your bank’s online service. That way, the rental payment is handled automatically on time without you having to remember it every time.
• Build yourself a small financial buffer: Surprising expenses can mess up anyone’s finances, so a small financial buffer will help make sure you have enough money left to pay rent.

Image: iStock