San Jose, CA asked in Landlord - Tenant for California

Q: Can a landlord charge an additional fee for rent paid by check?

The landlord of a retirement community inculded a clause in the lease for a $50 additional charge when rent is paid by check. ACH auto-pay is the only fee-free option offered. They are refusing to prorate the final month's rent, even though that is permitted by the lease agreement, so we are attempting to cancel the ACH auto-pay to prevent them from drawing the full amount.

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Landlords can charge additional fees for certain payment methods like checks, but whether this is legal depends on local laws. In many states, landlords can impose fees for non-electronic payment methods, but they must disclose this clearly in the lease. If the lease includes the $50 fee for paying by check, it may be enforceable.

However, if they are refusing to prorate the final month’s rent, and the lease explicitly allows prorating, they may be violating the terms of the agreement. It's important to document all communications and reference the specific clause in the lease to assert your rights.

You can stop the ACH auto-pay if you believe they will overcharge, but be sure to provide the alternative payment method within the required timeline. It’s a good idea to review your local landlord-tenant laws or seek legal guidance to ensure you’re fully protected.

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