Q: Can I charge $75 per week as a late fee for rent paid late? Someone is renting a room from me and it's in the agreement.
Rent is due on the first, but I provide a 3-day grace period. The $75 late fee is assessed on the 4th of the month and every 7 days thereafter. I have had issues in the past with someone thinking, "Well, I'm late on rent, might as well pay it at the end of the month" and that was severely stressful. To prevent that, I'm assessing a weekly late fee, which has been working very well!
I just want to make sure that's legal in the State of California (City of Santa Clarita, County of Los Angeles), and nobody has objected. I also figure it will deter those who are prone to making late payments from wanting to rent in the first place. So far, it has been a perfect solution.
Thank you for your help!
Note: this question is NOT related to COVID at all, but a general question.
A: No. let it alone.
A:
I would think that a late fee of $75.00 every 4 days is excessive. I would be unlikely to enforce such a provision in a contract under the law that allows discretion to avoid enforcement of "Unconscionable" terms in a contract. You may have a void provision, However, if you are just using it as a threat to keep difficult tenants current on their rent, you might continue to get away with it. Just don't expect to enforce it in Court.
Justia disclaimers below, incorporated herein.
1 user found this answer helpful
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
