Full question:
My tenant has failed to pay his rent for this month. Per the lease agreement, he should pay his rent on the first of every month. Can I charge a late fee for delay in the rental payment? What is the law in Texas in this regard?
- Category: Landlord Tenant
- Subcategory: Late Fees
- Date:
- State: Texas
Answer:
The landlord may not be able to charge a late fee for failing to pay rent unless the notice of the fee is included in the written lease or the fee is a reasonable estimate of the uncertain damages suffered by the landlord due to the delay in rent or if the rent remains unpaid for one full day after the date the rent was originally due. The relevant statutory provision in this regard is stated below.Tex. Prop. Code § 92.019 reads:
“(a) A landlord may not charge a tenant a late fee for failing to pay rent unless:
(1) notice of the fee is included in a written lease;
(2) the fee is a reasonable estimate of uncertain damages to the landlord that are incapable of precise calculation and result from late payment of rent; and
(3) the rent has remained unpaid one full day after the date the rent was originally due.
(b) A late fee under this section may include an initial fee and a daily fee for each day the rent continues to remain unpaid.
(c) A landlord who violates this section is liable to the tenant for an amount equal to the sum of $ 100, three times the amount of the late fee charged in violation of this section, and the tenant's reasonable attorney's fees.
(d) A provision of a lease that purports to waive a right or exempt a party from a liability or duty under this section is void.
(e) This section relates only to a fee, charge, or other sum of money required to be paid under the lease if rent is not paid as provided by Subsection (a)(3), and does not affect the landlord's right to terminate the lease or take other action permitted by the lease or other law. Payment of the fee, charge, or other sum of money by a tenant does not waive the right or remedies provided by this section.”
(1) notice of the fee is included in a written lease;
(2) the fee is a reasonable estimate of uncertain damages to the landlord that are incapable of precise calculation and result from late payment of rent; and
(3) the rent has remained unpaid one full day after the date the rent was originally due.
(b) A late fee under this section may include an initial fee and a daily fee for each day the rent continues to remain unpaid.
(c) A landlord who violates this section is liable to the tenant for an amount equal to the sum of $ 100, three times the amount of the late fee charged in violation of this section, and the tenant's reasonable attorney's fees.
(d) A provision of a lease that purports to waive a right or exempt a party from a liability or duty under this section is void.
(e) This section relates only to a fee, charge, or other sum of money required to be paid under the lease if rent is not paid as provided by Subsection (a)(3), and does not affect the landlord's right to terminate the lease or take other action permitted by the lease or other law. Payment of the fee, charge, or other sum of money by a tenant does not waive the right or remedies provided by this section.”
Thus, you may not be able to charge a late fee to your tenant for the delay or failure in rental payments unless the notice of the fee is included in the lease agreement or the fee is a reasonable estimate of uncertain damages suffered by the landlord due to the delay in rent or if the rent remained unpaid for one full day after the date the rent was originally due.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
