Late Fee Guidance for Lenders

Renters should return or post back items on the last day of their rental unless agreed otherwise. Late returns may incur a fee of up to the daily rental price plus 25% per extra day, capped at the item's replacement value. Fees must be fair, not punitive, and misuse may result in review by By Rotation.

⏰ When should renters return items?
Renters should return or post back your item on the last day of their rental, so it reaches you the next working day, unless you’ve both agreed otherwise.

📞 What if a renter says they’ll be late?
If a renter can’t return an item on time, they should contact you as soon as possible to request an extension.
You can decide whether to approve the extension.
If you can’t accommodate it, let them know the final date by which they must return the item (the Longstop Date).

💰 Can I charge a late fee?
Yes,  if a renter returns an item after the final day of the rental period, you may charge a late fee.
The maximum you can charge is the daily rental price + 25% for each extra day until you receive the item.

👉 Example:
If your daily rental price is £10 and the renter returns the item 3 days late, the maximum late fee is £37.50 (£10 × 3 × 1.25).

You can send the renter an invoice directly for this fee.

⚖️ Fair use reminder
Late fees are there to encourage timely returns, not to create profit or penalties.
Please only charge when it’s fair and proportionate to the delay.
If we believe this feature is being misused (e.g. excessive or unjustified fees), By Rotation may review the situation and take action if needed.

💎 Is there a cap on late fees?
Yes, the total amount of late fees can’t exceed the item’s replacement value (RRP).