Legal Question in Real Estate Law in California
Question about fee charged for late rent payments
My apt building in L.A. (where I have lived for 9 months) just changed hands. My husband and I typically pay rent on the 4th or 5th of the month because that's when he is paid (we thought we had a 5-day grace period). This month we turned it in on the 4th. I got a letter from my landlord saying that rent is officially due on the 3rd and we owe a $50 late fee to the new management company. The letter also stated that we had not been charged this $50 fee outright before, because our old management company had been taking it from security deposit automatically each month. We have never received any notices about this and had no idea that we were being charged. Since we have been ''late'' every month, that means we've now had $450 taken out of our security deposit without our knowledge. Our lease and it does state that rent is due on the 3rd and there's a $50 late fee. Questions: 1)Can a landlord take money out of tenant's security deposit a) without notifying them or
b) to cover late fees? Also, we looked up CA real estate law and found something to the effect that late fees
aren't supposed to be punitive, but to cover the processing cost of late payment. My landlord says he deposits checks after the 5th, so is does this apply?
2 Answers from Attorneys
Re: Question about fee charged for late rent payments
Retaining counsel to regain $450 does not seem to be a paying proposition. You should check with the local city government to see if they have some sort of tenant program to assist tenants. If the city has such a program then proceed in that manner. I believe your best defense is that the late fee was waived when the prior management company accepted the late rent payment without notice that it was late. Depending on how long you intend to live there it may be to your advantage to get the lease or rental agreement modified to allow payment on the 5th of the month with a late fee if not paid by the 8th. By changing the date for payment you would be able to be on time with your rent payment. If this does not solve your problem then resubmit your question with additional facts.
Re: Question about fee charged for late rent payments
The new management company is subject to following any and all terms of the leases executed by the former management company. Meaning, the new management company cannot legally do anything to you that the prior management company could not do, pursuant to the terms of your lease with the former company. There definitely appears to be "foul play" afoot with this new management company against you and most likely the other tenants as well. Your best option would be to retain legal counsel to review your lease and/or represent you against this new management company for denial of your rights.
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