Over Due Rent

Question

I searched previous posts but didn't run into the answer. I am sure this was asked before. What's the most efficient way to handle overdue rent with past due fees?
 Example: Rent is received late on the 13th of the month which has accumulated $40 of late fees. Where do I log the $40 for it to be added to next months rent reminder?

Do I just adjust the next month instance reminder or is there any other way?
 Maybe creating an account for late fees an assign each entry to different tenants using tags etc? I am just not sure what to do!

David Boater · Answer

You may want to try a split transaction after creating a category Rental Income Late Fees.  [Property A: Rental Income and Property A: Rental Income Late Fees]