We have a rental property that is managed by a property management company. This year, our tenants have paid late fees in addition to the rent. The management company filed these fees under Box 3, 'Other income', in our 1099-MISC for this property.
I am not certain how to correctly report this 'Other income'. It seems like a rent-related payment to me -- so I would assume that this ought to make its way into the net income from that property on Schedule E. However, instructions for this form seem to state that I can only add Box 1 (rent) income from the 1099-MISC to my Schedule E income. There is an item on the Schedule E for 'income not reported on a 1099-MISC', but that doesn't quite describe the situation.
In short: should I be reporting these late fees somewhere in Schedule E, or is there a better place on my tax returns to do so?