Recent Feedback
For over 10 years I have been living in an apartment complex that is governed by the State of California Tax Credit Allocation Committee (TCAC) for Low income families. My question is regarding Late Fees (rent) it has always been a charge of $25, which is stated in my lease. Last week tennants received a letter stating that starting 09/01/2009 the late fees will be raised to $50. Our rents were just raised as well mine was raised $65. I've been late on my rent a few times in the ten or so years, $25 is alot and $50 is just rediculous. Can they get away with this? My E-Mail has changed since my last visit it is XXXXXX@XXXXXX.XXX
Optional Information: State/Country of Question: California Already Tried: I just looked online under California's Tennants rights and according to what is said, that late fees are illegal
Here is a great article on the recent case law changes to late fees in California.According to the article and the cases it sites to, lates fees have been deemed liquidated damages clauses is California (by case Orozco v. Casimiro) late fees must be related to an actual cost that the landlord faces...something reasonably intended to address actual costs rather than an arbitrary sum of money. So the question is going to be whether or not it's legally set. Challenging that can be a difficult issue, but may be worth it (and affordable if everyone bands together to challenge it).So, late fees are not illegal.....just improperly set late fees are...meaning something that amounts to a penalty rather than an attempt to cover their costs (perhaps your missing rent charged interest per day, as noted in the article).
Experience: Lawyer and legal specialist with a career spanning 13 years.
thank you
You're welcome and good luck.