Legal Question in Landlord & Tenant Law in California
Late Fee For Rent In CA
My wife and I believe that our Landlord is overcharging by quite a bit for the late fee when we were one day late on our apartment rent.
We did a lot of research for the rental laws in California and discovered real cases where tenants challenged the landlords for charging to much for the late fee and won.
Correct us if we're wrong but, the laws state that that Landlord can only charge a percentage of the total rent to determine a late fee.
Our Question Please:
* Our rent was $930 per month
* The late fee was $55.80
* Is this correct or way to high?
If this is illegal according to CA Landlord-Tenant Laws, we have a VERY strong feeling that the management and owners have been doing this for a very long time to other tenants because the people that live in our complex don't have a lot of money to begin with, including us. The owners know that tenants aren't going to look up the laws and the tenants don't have the time or money to hire legal counsel to fight them, so the illegal and unethical practices continue! Rich get richer, poor get poorer!
I'm sure you'll agree that "just because the Landlord puts some specific clauses in a rental agreement and we sign it, that doesn't make them valid and legal if the law states that only a specific amount of the rent can be charged for a late fee!"
Correct?
Thank-you for you time and support.
Tenants in San Diego CA
3 Answers from Attorneys
The late fee is 6% of your rent. There is no law that expressly limits the amount of a late fee. Some courts will look at the fee like a liquidated damage and not enforce it if it is excessive under the circumstances. It has been my expereince that most courts will not find a 6% late fee to be excessive. Most late fees that I have seen range from $25 to $75 and are sometimes higher if the rental amount is high.
That is a very reasonable late fee, and any court will find it to be legal.
You landlord may charge late fee, but no matter what the fee is, if it is not designated as "additional rent" anywhere in the rental agreement, they cannot add it as part of money owed to support an eviction. They'd have to go to small claims court to collect it, or waive it from an eviction action. But if the late fee is deemed to be "additional rent," then you may face an eviction that will hold up in court.
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