$600 Late Fees in Texas

[Nikki Stoddart]

Hello all,

I recently purchase a Texas MF with tenants in place.  The lease that the tenants signed with the Seller states that rent is due on the 1st of the month.  On the 2nd, a $50 late fee is charged, plus a $20 per day late penalty.  

 The previous owner never enforced the late fees, although one of the tenants was chronically late (undisclosed at time of sale),

I sent all the tenants a change of ownership letter restating the terms of their lease, including the late rent penalties.  This tenant chose to ignore the letter, and assumed I would not be enforcing the late fees.  The first month after purchase, she was 29 days late with rent.  She gave me various excuses such as "I am not paying you until you come change my lightbulbs", and a lot of other BS.  I told her if she wanted to avoid an eviction, she had to pay me rent plus the late fees specified in her lease. This meant that she owed almost $600 in late fees by the time she sent me any money.  (She said she had the money, but was withholding it because her lightbulbs burnt out and she wasn't sure if she wanted to stay in the apartment).

My question is: Is this even enforceable?  This is my first long term rental property, and I am unfamiliar with normal late fees.  $600 in late fees seems excessive.

(Least you think I am completely heartless and cruel, you should also know that this tenant snuck in a cat.  Her lease states that pets are not allowed, and there is a $500 fine for having a pet, plus a $20/day pet rent.  I am turning a blind eye to the cat for now. )

She is moving out in January anyway, and I have no interest in keeping her as a tenant any longer than I have to.  She has been a complete and utter pain from day 1.

I just want to know if I can legally enforce the late fees specified in her lease.

[Shawn Davis]

Hi Nikki - 

You should double check your local rules but I believe Texas allows for both a one time late fee and a daily late fee so long as they are "reasonable."  Of course, they don't define reasonable but depending on the overall rent, the $50.00 and $20 daily don't seem excessive.

Call the local rental owner's association in the area where your property is and pose the question.  I have always found them to be a great resource.   These associations usually have condensed versions of the local rules with helpful explanations available for members, as well as approved and updated local forms.   Looking at an approved lease outlining late fees charged might give you comfort if the numbers are similar to those contained in your lease.  The membership fee for these associations is usually very reasonable and is worth it in my opinion.

What leads you to believe she is leaving in a January?  Is her lease up or did she give notice.  You may want to check your local rules again because you may have notice requirements if you don't plan to renew her lease.   If you really don't want her to stay on, and she hasn't given you written notice of her departure, you may need to get it in writing or provide notice yourself that you don't intend to renew.