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Lease Agreement Late Fees Lawyers
Can a Landlord Charge a Late Fee if My Rent is Late?
A landlord generally has the ability to charge a late fee if rent is not paid on the due date. However, the landlord must have included a late fee provision in the written lease agreement stating how much the late fee is and when the late fee is due. A landlord also has the ability to start the unlawful detainer process if a tenant's rent is late.
How Much Can the Landlord Charge for a Late Fee?
The landlord can charge any reasonable amount that reflects the landlord's actual losses because of the late rent payment. Late fees should not be designed to penalize the tenant; unreasonably high late fees are usually not enforceable.
What are Liquated Damages?
It is often very difficult to determine the actual loss the landlord suffers due to late payment of rent. Both parties may agree in advance, usually in the lease, that a specified amount is due instead of calculating the actual loss after it is suffered. This type of clause in a lease is called a liquated damages clause. The courts have generally upheld liquated damages clauses in residential leases.
What if the Late Fee is Excessive?
If the late fee is excessive and unreasonable, a court may declare the clause in the lease containing the late fee provision void. A tenant may also be awarded money to penalize the landlord if the late fee violates a city or state law.
What is Considered an Excessive Late Fee?
Courts in some jurisdictions have held late fees that are $1 a day to be excessive. Courts in other jurisdictions have held that charging $40 for being one day late is not excessive. What a court considers to be an unreasonable and excessive late fee depends on the jurisdiction the property is located.
Do You Need a Lawyer for My Late Fee Problem?
Landlord tenant law is very complex, varies by city, and is constantly undergoing changes. An experienced landlord-tenant lawyer can advise you of the exact rules your city has regarding late fees and can protect your rights, whether you are an owner trying to utilize a late fee clause or a tenant fighting an excessive and unreasonable late fee.
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