Rent and Late Fees

RENT AND LATE FEES:

  A landlord can charge any amount she/he wishes for rent. There are no limits to increases, as long as the lease is expired ( or will soon expire) and a proper notice is given. See (Changing Terms in the Middle or End of lease). 

 Often, your lease will state that rent is due on the first of each month. Many leases will provide a "grace period" in which rent can be paid late without a penalty. Always get receipts for payments and keep them as long as you live there, especially if you pay cash or by money order. If the landlord claims she/he didn't receive a money order from you and don't have a receipt, you can run a "trace" on the money order ( to determine who may have cashed it) by contacting the company that issued the money order. If any of the landlord's employees cashed the money order, you are probably not responsible for that rent payment. Usually for a fee, a money order company will reissue a money order that hasn't been cashed. 

  A landlord must accept rental payments in the form of cash, unless the written lease provides otherwise. If you pay rent in cash, your landlord must provide you with a written receipt. The landlord must also keep a record of the date and amount of each payment.

  A landlord can charge a reasonable late fee if you pay rent one day or later after the due date in your lease agreement, and if the lease gives notice of the fee. If you don't pay your rent on the due date ( or within the grace period if one is provided), the landlord usually has the discretion to either terminate the lease agreement or accept the rent and the appropriate late fee. See "Termination for Tenants Breach". If you suspect that your landlord may refuse to accept your rent, be sure to offer the money in person and with a witness(not just over the telephone) so that you can later show the court that you attempted to pay rent. 

   Although there are no specific legal limits on late fees, they must bear some reasonable relationships to the actual costs incurred by the landlord as a result of the late payment. For example, if the landlord's costs as a late payment are $15.00 and the landlord charged $150.00 as a late penalty, that could be ruled an unenforceable penalty. If a landlord is found to have charged a late fee without notice in the lease regarding such a fee, or if the fee doesn't bear a reasonable relationship to the landlords actual costs, the landlord may be liable to you for $100.00, three times the amount of the improper late fee, plus your reasonable attorney's fees. Additionally, a landlord may be in violation of the Deceptive Trade Practices- Consumer Protection Act if the landlord charges extremely excessive late fees.