Breaking Lease Early After Being 10 Days Late on Rent (apartment, eviction, renters)
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I have a few questions, but here's the background:
I live in an apartment which is just way too far from my job (42 miles each way; 2 hour drive in CA). I wanted to break my lease. I know I have to give a 30 day notice before breaking my lease. What complicates matters is I am 10 days late on my rent this month. I tried to make a payment on the 8th date, but the property management company removed the ability to make the payment online. I offered to drop off a certified check for the amount and a $100 late fee(standard fee this PM company charges as I've rented from them 2 years prior in another city). They explained to me I can pay them, but it also has to include $750 in legal fees since rent wasn't paid by the 10th date. And they said I have by Monday to give them that, or it jumps up another $750 for more legal fees.
Now I didn't notify them that I will be breaking the lease as I want to have something lined up, but I simply cannot afford this amount at this time by Monday (had to pay for $500 deductible from my car insurance as someone hit my car in a hit and run which caused $5700 in damage to my car; plus I have to pay rental fees). Next Friday would be the earliest. In addition to that, they never served me a 3 day notice to leave voluntarily (from reading the law, they have to give me this notice). So I'm questioning what the legal fees are for if they haven't started the legal process and why another set of fees will get added to that. I checked my lease agreement and it says nothing in terms of how much money legal fees would be and it does say I would be given a 3 day notice with a $100 late fee assessed before it came to that.
So what plan of action should I take? Should I simply state I plan on leaving at the end of the month or 30 days and to bill me after they have found a tenant? Or should I stick it out still? I have 8 months on my lease left, but it's costing just way too much time/money in terms of commuting. I tried to explain my situation to them about why I am late, and they haven't responded to me. How would CD attack this?
TL;DR
10 days late on rent. Was told payment could only be made by certified check. I offered to pay the standard $100 late payment in addition to rent. Prop MGMT is adding $750 in legal fees which has to be paid in 3 days or another $750 gets tacked on, but never received any notices from the property management company prior. Also want to break lease(subletting is not allowed).
I would also look at what you state stipulates. In Chicago, there are very specific guidelines for late fees ($10 for the first $500 + 10% for any rent higher than $500). Landlords are not allowed to penalize renters for anything more than that. While I know that some states/cities don't have laws/ordinances like this in place, California must.
Besides, what are they charging "legal" fees for? They shouldn't have any legal fees unless they have filed for your eviction, which they could not have done with serving you a notice first. Even so, it's hard to think they could rack up such high legal fees already.
That said, if you are looking to break your lease, I'm sure the company would have been easier to work with if you were not late on rent. They may be less accommodating to you now.
That is pretty extreme and probably illegal. Read your lease but legal fees can begin once you are late and eviction needs to begin, if they had to consult a lawyer to issue your pay or quit notice. If I were you I would begin calling lawyers for a quick phone consult.
Thanks. Per California Law, for the pay or leave notice, you do not need a legal team to do that in California. It can either be mailed, given to the person directly, or left on their door. The only thing I got was a "Your rent is late. Please make the payment or contact the office. If you have already made your payment online, please ignore." I also finally received an answer back and they explained to me, the legal fees cannot be waived or applied to even the following month because that's what they use to pay their legal team. No billing breakdown was given and no billing is listed on the portal(they removed all of this since I was late).
I would think that legal fees are paid by the person employing the legal team (the management company/LL) until a judge determines otherwise. If I were you, I would just move and fight after the fact. I don't see how they can legally refuse your rent and late payment if not specified in lease or a Pay/vacate notice is give. Sounds like extortion to me.
Thanks. Per California Law, for the pay or leave notice, you do not need a legal team to do that in California. It can either be mailed, given to the person directly, or left on their door. The only thing I got was a "Your rent is late. Please make the payment or contact the office. If you have already made your payment online, please ignore." I also finally received an answer back and they explained to me, the legal fees cannot be waived or applied to even the following month because that's what they use to pay their legal team. No billing breakdown was given and no billing is listed on the portal(they removed all of this since I was late).
Just because it isn't required doesn't mean it wasn't prepared by a lawyer or they didn't consult a lawyer. The notice you got was not a pay or quit so I am curious why they consulted with a lawyer at all. You most likely did agree to pay legal fees in your lease so I would demand proof of the fee before you pay it.
Do note that if you drag your feet here you could end up being evicted. Your best long term strategy here is to move out and return keys asap. Setup payment arrangements with them and avoid going to court, once it is settled down a little you can fight with them about the legal fees and take them to court but don't let them take you to court. If you do get evicted it will haunt you for the rest of your life.
Those late fees are illegal in California. CA is very tenant-friendly, and the LL has to mitigate damages (ie they have to look for a new renter and can only charge you for time the unit sits empty). I would pay the rent plus the normal $100 late fee, and give notice that you are moving out. Then do it. You will have to fight them because they will likely keep billing you for thousands in bogus legal fees and may not look for a new tenant. It'll be a pain, but in CA the court will be on your side. Those late fees are not reasonable (per CA law) or in your lease and you don't have to pay them.
Those late fees are illegal in California. CA is very tenant-friendly, and the LL has to mitigate damages (ie they have to look for a new renter and can only charge you for time the unit sits empty). I would pay the rent plus the normal $100 late fee, and give notice that you are moving out. Then do it. You will have to fight them because they will likely keep billing you for thousands in bogus legal fees and may not look for a new tenant. It'll be a pain, but in CA the court will be on your side. Those late fees are not reasonable (per CA law) or in your lease and you don't have to pay them.
OP's only late fee is $100. The rest are legal fees.
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