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I've been doing some research to what a reasonable amount would be for a landlord to charge for a late rent fee. By reasonable, what is the legal amount to charge on a % basis?
Here's my story. I've been paying rent on time for quite a while now, but I was a day late this month and consequently got an e-mail from my property manager saying their accounting system has attached a 15% late fee for not paying the rent on time (which is due by the 5th).
The lease agreement says that the late fee is 15% which I agreed to and there's no if's or but's that this was an oversight on my part, however I'd like to know if I'll be able to at least negotitate the late fee down a bit or gain a little knowledge to what I can do to alleviate this fee. If not, I'll just pay and move on, but 15% just seems too unreasonable.
Again, I know that paying rent on time is my responsibility and something I would expect if I was leasing/renting out my property, but I'd like to know more about what is reasonable and unreasonable by law.
I don't recall any limit on late fees in that document. You did sign the lease and admit that it was in the lease so you agreed to it. A small claims court judge may decide it is "excessive", but you'll have to use time/money to go through the process.
I'm an amateur landlord in NOVA and I charge a $50 late fee. My tenants were late for the first time this month. They called me about 10 days before rent was due and explained their situation. Since they took the time to notify me and also because it was their first time, I told them I'd waive the late fee this one time.
You might nicely ask that they waive your late fee since it was your first time being late. It can't hurt to ask. Worse they can say is no and you're in the same spot. Good luck to you.
Thanks for the link. I've already communicated with the property manager and it seems like the only way out is to pay the late fee. I guess this is an expensive learning lesson...
I've been doing some research to what a reasonable amount would be for a landlord to charge for a late rent fee. By reasonable, what is the legal amount to charge on a % basis?
there's no if's or but's that this was an oversight on my part, however I'd like to know if I'll be able to at least negotitate the late fee down a bit or gain a little knowledge to what I can do to alleviatethis fee. Thanks!
Whats legal is according to lease and allowable by state LL/T code.
The only knowledge to be gained, make rental payments within the grace period, the 1st thru the5th.
A PM will sometimes cut some slack, if you've been a great tenant and timely with rent, otherwise, the late fee is not negotiable.
When and if you decide to move an inquiry is done with your previous management company. The question is always asked, how many times late on rental, this is where it will have an effect in determining eligibility. Checks returned due to insufficent funds carry a fee as well and result in no longer accepting rent in form of check.
As I understand it, most states allow for "reasonable" late fees but usually that term is not defined, it's left up to the judge if the dispute makes it to court. I would say that 15% is far above what is customary here, but I think it would be a hard sell to classify it as unreasonable.
In Virginia, can the landlord charge $100 a day for late fee's on a single family house. Even thou it was started in the least.
In CA, there is no limit, except a LL would have to show a 'reason/cause' (if this went to court for some reason) for the amount if it was excessive. For example, if MY mortgage payment is late because -I- rely on your rent to make MY mortgage payment, and I incur a $300 late fee, I can definitely charge you a similar amount for being late (since me making my mortgage payment relies on your rent).
For us people here in internet land, it's hard for us to tell you the correct specific answer. Like oregon said, just always pay on-time.
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15%?!
