Rent Late Fees Can Be Illegal

Have you ever been a few days late on rent? Did your landlord charge you a late fee? If so, your landlord may have broken the law, and you could be entitled to a refund and other relief. Residential Late Fees Texas law treats residential and commercial leases differently. For residential leases, a late fee can only be charged if: the written lease includes notice of the late fee, the rent remains unpaid for at least one full day after it was due, and the late fee is a reasonable estimate of the harm the landlord would actually suffer if the rent was late. A late fee can (and should) include an initial fee and a daily fee for each additional day the rent remains unpaid. In Texas, many—but not all—residential leases are form leases developed by statewide organizations like the Texas Apartment Association or the Texas Real Estate Commission. Form leases, however, leave blanks for the landlord to fill in certain terms, such as the address, rent, and starting and ending dates. Many other leases are drafted so that they look like form leases. But just because it’s a form lease doesn’t mean it’s legal. If you have been charged a late fee, that late fee could violate Texas law, and you could be entitled to recover up to $100 in statutory damages, three times the late fee charged, and your reasonable attorney’s fees and court costs. If you believe you’ve been charged an illegal or exorbitant late fee, give us a call for a free consultation. We work on contingency, and you’re never responsible for fees or costs except to the extent that we recover money.