In light of recent litigation where plaintiffs allege they were assessed unreasonable late fee charges and research alleging a correlation between late fees and eviction, leading to homelessness, state legislatures are moving to more strictly and clearly define the amount an owner or operator may charge a resident for paying rent past due. Moreover, in some jurisdictions, policymakers are attempting to prohibit owners and operators from assessing late fees at all and are further restricting their ability to recover late fees in the eviction process.
As an Owner or Operator, How Does this Affect My Business?
There continues to be great variation among state and local laws and case law as to the what constitutes reasonable late fees that an owner or operator may assess. With such variation in the law housing providers should be knowledgeable of the rules within the states and localities they operate to avoid litigation and potential class action lawsuits.