Rentwise! Chapter Three -- Rent Raises and Late Fees

LATE FEES: By law you have a 5-day "grace period" after the due date to pay rent. On the 6th day your landlord can decline your rent payment and evict you for defaulting on the contract. Late charges can't exceed 10% of the monthly rent ( a lot of money to waste!) and are due immediately.

RENT RAISE: Most leases "lock in" the rental amount for the duration of the contract. However, some leases contain an "escalation clause" that allows for rent raises if 30 days' notice is given in writing. Rent cannot be raised during the term of the lease without this specific clause. In the future, avoid leases with this provision!

If your lease states that rent will be raised if taxes, utilities, or insurance premiums go up, the percent of your raise should not be more than the percent of leaseable space that you occupy. For example, if management wants to charge you for 10% of the insurance/tax increase, then your unit should equal 10% of the total complex. If you only occupy 2% of the space, the landlord may be seeking a "windfall." You may be able to fight this provision in court, especially with a class action suit.

REFUSAL OF RENT: Tenants are often confused when landlords refuse to accept late rent. The landlord has probably already filed suit to collect back rent, and acceptance of rent may interfere with the process of eviction that is underway. Landlords may also refuse partial payments of rent. Document these attempts to pay and show dates to the judge at your eviction hearing. Show that you still have the money in your checking account and can pay it on court day.

PRORATED RENT: If you occupy the unit for only part of a month, rent will be charged "per diem," or by each day. Divide the monthly rent by 30 (days) to find your daily rate.

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