Is this legal? Charging cumulative "concession" fees if rent is late (apartments, lease)
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I was going to sign a lease soon with Brentmoor Apartments in Raleigh, NC; however, the lease says that even if you are 1 day late with the rent (meaning, on the 6th or after), they will charge you all the 'concessions' they've made thru the course of the lease. For example, my rent would be $649/mo, even though the market rate is $1,049.
However, if I were late on my third month (for example), I would be charged my rent plus ($400 x 3 = $1200) $1200 in late fees!!! If I didn't pay my $649 rent plus the $1200 late fees within 30 days, I'd be evicted! Is this legal?? Is this is perfectly within their rights? It doesn't seem as though it would be. Thanks all!
(Now, as a disclaimer, I've never been late with rent in my life. But let's say, god forbid, I was in an accident or something and didn't return home for a few days. If I were in say, my 10th month of living there, they could say "here's a bill for $4000, pay it in 30 days or you're evicted." ANYTHING can happen, that's why this is so scary.)
According to a book I have "American Landlord" published in 2008, regarding North Carolina it says:
"Late fees cannot be more than 5% of the rent amount due or $15, whichever is greater, and can be charged when rent is 5 days late."
Thank you so much for your answer.
However, they are not calling it a "late fee", they are saying that you have to "pay back the concessions"... does it matter the language they use? It IS essentially a late fee, after all, but they're not calling it that.
However, they are not calling it a "late fee", they are saying that you have to "pay back the concessions"... does it matter the language they use? It IS essentially a late fee, after all, but they're not calling it that.
It's not a late fee. If the market rent is $1049, and they're reducing that amount to $649 if you pay on time, then it's not a late fee to charge you the full amount of the market rent. That's what concession means...they're giving you a reduction as long as you pay on time. If you fail to pay on time, you have to pay the full amount. So it's not a late fee.
It's not a late fee. If the market rent is $1049, and they're reducing that amount to $649 if you pay on time, then it's not a late fee to charge you the full amount of the market rent. That's what concession means...they're giving you a reduction as long as you pay on time. If you fail to pay on time, you have to pay the full amount. So it's not a late fee.
I see what you're saying. But, can they charge me all the previous months as well?
Here's my concern: what if I couldn't physically pay by the 6th, on, say, my 10th month of living there -- like, I had the money but I was in the hospital or something. They could charge me THAT month PLUS all the previous months? Like, say $4,000?!
They don't have automatic draft -- I asked about that as an option, to make myself feel better, and they said no, they don't have it.
So, they can charge that month's concession plus all previous months' concessions?!
Wow. I just wish there was some way to protect myself. I am a conscientious renter, but worried about getting in a hole because of something unexpected...
The bottom line is that if you're not happy with the way the lease is set up and foresee something possibly happening in the future which will prohibit your paying the rent on time, don't get into it and look elsewhere. It seems to me that this is a pro-active move on the part of the lessor to get tenants in what we all know is a disastrous market right now and which gives them the right to legally dun you as the recession continues. Frankly I'd back off. I'd venture to guess that within the next six months those units will be $649 or whatever, period and the landlord/owner will still be able to make ends meet.
Market value? We're all suffering from the downturn in the economy and what may have been "market value" a year ago isn't viable now and won't be for some time to come. Cheers!
I see what you're saying. But, can they charge me all the previous months as well?
Here's my concern: what if I couldn't physically pay by the 6th, on, say, my 10th month of living there -- like, I had the money but I was in the hospital or something. They could charge me THAT month PLUS all the previous months? Like, say $4,000?!
They don't have automatic draft -- I asked about that as an option, to make myself feel better, and they said no, they don't have it.
So, they can charge that month's concession plus all previous months' concessions?!
Wow. I just wish there was some way to protect myself. I am a conscientious renter, but worried about getting in a hole because of something unexpected...
If you have online banking (if not...get it!) you can set up monthly payments...so even if you were in a hospital...the amount will be paid on a certain date.
The same is for utilities...if you are late with paying it they will cut you off if you over a certain amount of days...late! (only during a period of cold they can't cut you off so you would freeze to dead in your house, but other than that they will do so...so just pay on time and don't worry.
The bottom line is that if you're not happy with the way the lease is set up and foresee something possibly happening in the future which will prohibit your paying the rent on time, don't get into it and look elsewhere. It seems to me that this is a pro-active move on the part of the lessor to get tenants in what we all know is a disastrous market right now and which gives them the right to legally dun you as the recession continues. Frankly I'd back off. I'd venture to guess that within the next six months those units will be $649 or whatever, period and the landlord/owner will still be able to make ends meet.
Market value? We're all suffering from the downturn in the economy and what may have been "market value" a year ago isn't viable now and won't be for some time to come. Cheers!
Exactly! It's not market value, I don't think.
But:
Is it legal for them to do this?
and, can they charge cumulative fees like that? like, the 400 from each month carries over?
If you have online banking (if not...get it!) you can set up monthly payments...so even if you were in a hospital...the amount will be paid on a certain date.
The same is for utilities...if you are late with paying it they will cut you off if you over a certain amount of days...late! (only during a period of cold they can't cut you off so you would freeze to dead in your house, but other than that they will do so...so just pay on time and don't worry.
Yes, you're right about that -- I just wonder (paranoid as I am, ha) that maybe, as a money grab, they'd say they didn't get it before the 6th or something, that it came on the 7th or whatever. I wonder if they could do that..
I know what you mean about the utilities. But they just cut them off, they don't charge you $4000 and keep them off to boot!
You think online banking would be the way to go? I'm still scared they'd act as if they didn't get it on time or something. It's a lot of pressure for something really bad that could happen from such a little mistake!
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I just wish there was some way to protect myself. I am a conscientious renter, but worried about getting in a hole because of something unexpected...
