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Updated about 3 years ago on . Most recent reply

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Alex Brit
  • Brooklyn, NY
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Late Payment Fee in ATX

Alex Brit
  • Brooklyn, NY
Posted

Hello fellow Big Pocketers, 

I’m wondering if charging a late rent payment fee is legally permitted in the State of Texas (Austin) and how much to charge. A percentage of the rent, a flat fee, how much? 

Thanks in advance!

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Bryan Noth
  • Realtor
  • Austin, TX
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Bryan Noth
  • Realtor
  • Austin, TX
Replied

@Alex Brit see below for Austin and all of Texas. 

@Greg H. this was changed and now has a limit. 

If rent is more than two full days late then the landlord can collect a "reasonable" late fee provided the fee is included in a written lease. The term "reasonable" for this law was clarified in 2019 to be:

Link below from the Texas state law Library:

https://guides.sll.texas.gov/l…

Link to actual statues here:

https://statutes.capitol.texas...

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