Can Landlord Charge Late Fees After Tenant Has Moved Out?

UPDATED: Jul 13, 2023Fact Checked

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Jeffrey Johnson

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 13, 2023

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UPDATED: Jul 13, 2023Fact Checked

This is a contractual issue. A lease at its heart, a contract; that means that both parties (landlord and tenant) are bound by the terms and conditions they agreed to when executing or signing the lease. Therefore, whatever late fee(s) are in the lease will usually be upheld; and it also means that the landlord cannot charge you more in late fees than is in the lease. The lesson here is to not sign a lease containing any term with which you disagree or are not prepared to honor.

In regards to charging late fees after a tenant has moved out, “moving out” is itself irrelevant. Remember, a lease is a contract; if there is rent due and it is paid late, the landlord may charge a late fee pursuant to lease terms, regardless of the tenant’s residency or occupancy. For example:

Suppose a lease ends December 31st, and rent for that last month was due December 5th. Suppose further that the late fee is a cumulative one: $5.00 per day late. If the tenant forgot or failed to pay and moved out on the 31st, he’d already owes 26 days x $5.00 = $130.00 in late fees. If he still doesn’t pay, that amount owed will keep going up by $5.00 per day, even though the tenant no longer lives there.

As you can imagine, this can amount to a large sum in the event of breach of a lease. For another example, suppose that each month the rent is paid late, the tenant owes $100.00. If the tenant breached his lease and moved out 8 months early, he would owe $800.00 in late fees.

As noted, the obligation to pay the late fees will continue past the end of a tenant’s occupancy.

There are certain limited circumstances when a late fee may not be enforceable—for example, if a landlord discriminates on an illegal ground to whom he charges late fees; if the landlord made it impossible to pay the rent on time, such as by closing its office so it couldn’t receive the rent; or arguably in certain cases, if the fee is grossly excessive and the tenant was sufficiently powerless that he had no choice but to agree to it. Also, if the late fee was not disclosed properly when the lease was signed, it might be unenforceable or possibly even give rise to a fraud claim against the landlord. If you think one of these situations may apply, you should consult with an attorney.

Otherwise, fees agreed and contracted to between the landlord and tenant are enforceable.

Case Studies: Late Fees and Tenant’s Move-Out

Case Study 1: Tenant Late Fees – Obligations and Consequences

Meet Sarah, a tenant who recently moved out. In this fictional case study, we explore whether landlords can charge late fees after tenants have moved out. Sarah forgot to pay the last month’s rent before moving out, resulting in $130.00 in late fees for the 26 days of delay. This case highlights the ongoing obligation to pay late fees, regardless of residency or occupancy status.

Case Study 2: Limited Circumstances and Enforceability

Consider Mark, a tenant who faced issues with their lease agreement. In this fictional case study, we examine limited circumstances where late fees may not be enforceable. These include discrimination, obstacles to timely payment, excessive fees, and improper disclosure. Seek legal advice for guidance in similar situations.

Case Study 3: Lease Agreements and Enforceable Fees

Alex encountered issues with late fees in their lease agreement. In this fictional case study, we explore the enforceability of contracted fees. A lease agreement is a legally binding contract, and both parties are obligated to uphold the terms they agreed to. Tenants like Alex should carefully review and understand all terms before signing a lease.

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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