We have a tenant who is ignoring the late fees? They have been paying their rent but the last month or 2 they have been late and getting late fees. We did send them the lease which states about the late fees.
We have written her a letter stating about the late fee payment.
Question: Can we deduct the late fees from her deposit? If she does not pay them?
Unless the lease specifically allows you to deduct from the deposit, I would say that it might be better to deduct the late fees at the termination of the lease. You might also notify her that this will be done.
You could even take a hard line and say that the late payment and failure to pay the late fees are a breach of the lease and that she will have to move if they are not paid. It depends on whether you want to risk losing a tenant.