Late Rental Payment Laws

Many states do not have laws that specifically regulate late fees.  However, most states apply a “reasonable” or “fair” standard when dealing with disputes over late fees between landlords and tenants.  So, a late fee that is 5% of the rental amount would probably be considered by most courts as reasonable or fair.  Whereas a late fee of 50% of the rental amount would probably not be considered reasonable or fair.

Some states do regulate late fees.  In these states, landlords may charge a late fee after certain conditions have been met:

• Giving the tenant written notice that the rent is late
• After the rent is a specific number of days late
• Evictions for Late Rent and the Law

Whether your state calls it an unlawful detainer action, a dispossessory action, or an action in ejectment, the goal is the same.  Your landlord wants to evict you.  Before a landlord can evict a tenant, he must follow certain procedures.  He cannot avail himself of self-help remedies, such as changing locks or or shutting off utilities.

Evictions for Late Rent

• The first step in the eviction process is for the landlord serve the tenant with an eviction notice.  The  eviction notice must include a statement that if the tenant does not pay the rent and any late fees within a specified period of time, he will be evicted.  If the tenant pays within the specified time period, the landlord cannot evict.  However, if the tenant doesn't pay within the specified time frame, the landlord is free to file an eviction action.
• Once the landlord files eviction papers with the court, the process moves very quickly.  The tenant will have only a few days to file an answer after he's served with the eviction complaint.  If the tenant does not file an answer, the court will enter a default judgment in favor of the landlord.
• If the tenant files an answer, the parties will have to appear at a hearing where the judge will allow both sides to testify and present evidence.  At the end of the hearing, the judge will make a ruling.
• If the judge rules in favor of the landlord, he may not immediately change the locks.  He must take a copy of the court's order, known as a writ of possession in most jurisdictions, to the sheriff who will post a it on the property.  The notice tells the tenant that he must vacate the property by a certain date, otherwise he will be locked out.

Landlord Advice

As a landlord, there are certain things you can do to protect yourself.

• The lease should indicate what the grace period is;
• The lease should clearly state what the late fee is;
• The lease should state that the you are not waiving your right to collect a late fee or evict a tenant because of a late payment simply because you've accepted a late payment in the past;
• If you accept a late payment, send the tenant a certified letter which specifically states that your acceptance of the late payment does not constitute a waiver of your right to collect late fees or evict the tenant as a result of future late payments;
• Never accept a late payment without collecting the late fee;
• Keep good records; Know and follow the law.

If you are unsure of how handle an eviction, you should contact an experienced landlord-tenant attorney in your area.

Tenant Advice

Many tenants find themselves facing eviction for non-payment of rent as a result of the landlord's faulty record keeping.  As a tenant, there are some things you can do to protect yourself.

• Never pay your rent with cash; if you must pay with cash, ALWAYS get a receipt;
• Always pay your rent with a check or money order so you have a record of the payment;
• Keep copies of your cancelled checks, receipts, or money order receipts for as long as you are renting the property; and
• Keep copies of all correspondence between you and the landlord.

Legal Help

A landlord must follow the law exactly in order to evict a tenant.  This means he must give you all notices required by the law and those notices must be served on you as required by law.  The eviction process can take as few as twenty days.  So, if you are served with an eviction notice, don't ignore it.  Contact a qualified tenant's rights attorney to determine what your rights are.