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Updated about 9 years ago,
- Rental Property Investor
- Baltimore County Maryland and Tampa Florida
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Order in which to apply payments, Baltimore County
I was reading over some rental laws in Baltimore County (not to be confused with City) and noticed something interesting.
While there is no law stating in what order you must apply late rent payments, the order does matter when dealing with a Breach of Lease.
So for example, Tenant is late and you file for rent court and charge late fees. If your lease states payments are first applied to late fees and court fees, then the remaining money goes to the actual rent, you can do that. Basically, do what your lease states.
But if you've sent a Breach of Lease notice and requested they move out, and of course they didn't move, now you must file for eviction in court for Breach of Lease. In the meantime, they are still expected to pay rent. Any payments you accept in this case must first go towards rent, THEN to fees:
http://www.peoples-law.org/breach-lease
I just wanted to share this information in case someone finds it useful and helpful! The nuances are important to know.