Q: Renting in Oregon. Regarding ORS 90.260. 5 days late. Landlord opting for per-day fee. How does the fee cap work?
Basically trying to make sure all parties are interpreting the statute correctly before I pay.
* Renting a room from a private home.
* Agreement says "a late charge of five percent (5%) of unpaid rent then due"
* Rent is 750 a month.
* Landlord is asking for 187.50 (37.50 times five days late)
*The five days late is including the grace period.
A: It sounds as if the landlord is trying to charge a per day late fee - which is only legal if that is explicitly specified in the written lease. Even then, a per day late fee charge cannot exceed 6% of a reasonable once a month late fee - i.e. if a reasonable monthly late fee is $100, then the daily late fee cannot be more than $6.00. A landlord can also charge (IF specified in the written rental agreement) a 5% of the monthly rent for each 5 day period, or part thereof, the rent is late. Or he can charge a flat amount, once per month. Regardless, it has to be clearly spelled out in the written rental agreement or it is not enforceable at all. The rental agreement must also specify the date rent is first due and the date when a late fee becomes due.
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