What is the California Late Fee Law?
- There is no such thing as a "standard rental agreement" in California. While most landlords use pre-printed rental agreements, these vary widely in terms and language. When your landlord asks for a late fee, the first thing to do is to review your rental contract. If the written agreement does not contain a late fee provision, the landlord cannot charge you a late fee.
- California law upholds a late fee provision if the amount of the fee is reasonably related to the additional costs the landlord will face because of the tardiness of the payment. Late charges of between 5 and 10 percent of the rental amount are usually deemed valid.
- Angry landlords may try to use late fees to punish tardy tenants.Business woman expresses her anger while on her cell phone. image by Andy Dean from Fotolia.com
Some late fees are intended to punish tenants for paying their rent late instead of to compensate the landlord for the extra expenses he incurred. A late fee that is so high that it constitutes a punishment is illegal. Late charges designed to stop a tenant from late payment are also rejected by California courts. - San Francisco rent control gives tenants additional rights.san francisco golden gate at night image by sharon hitman from Fotolia.com
Some California cities--such as San Francisco--have enacted rent control ordinances that set special rules for landlord/tenant relationships within that community. Rent control ordinances can contain provisions limiting or restricting late fees and these provisions will take precedence. - If eviction is threatened, it may help to talk to an attorney.Finger pointing to the words in agreement image by Dmitry Goygel-Sokol from Fotolia.com
If you feel your landlord has charged an unreasonable or illegal late fee, you have several options. You can try to negotiate the matter with him, refuse to pay the fee or pay the fee and go to small claims court to reclaim the money.
Rental Contract
Rule of Reason
Punishment Prohibited
Rent Control
Contesting Late Fees
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