Can a Landlord Charge Interest on Overdue Rent
My question involves landlord-tenant law in the State of: TX
I'm a landlord with a tenant who is behind on her rent, due to her forgetting" to direct deposit one month of rent earlier this year. Our lease has the standard clause stating 10% late fee if rent is 5 days late.
Problem is now he claims she needs more time to come up with the past due rent.
Is there any defacto standard interest rate recommended for landlords to charge tenants that are trying to catch up up their rent? Something like additional 5% each month on the unpaid balance? I know I have the right to serve a detainer warrant but want to know the diplomatic solution without going to court, which will still encourage her to pay up quickly.
Re: What Kind of Interest Should Be Levied for Past Due Rent
"Is there any defacto standard interest rate recommended for landlords to charge tenants that are trying to catch up up their rent?"
So you think you're some kind of bank?
No; there is no legal "defacto standard interest rate recommended for landlords to charge tenants that are trying to catch up with their rent?"
In fact, since you've accepted rent since this event it might be argued in court you can't charge a late fee for something that happened earlier this year.
Either agree to work with your tenant or begin the process of eviction.
Gail
Re: What Kind of Interest Should Be Levied for Past Due Rent
If your lease does not specify interest on the late rent then you cannot charge interest. Whether you may charge interest at all is something to ask your lawyer. You should have a lawyer to ask questions like this and to draft or review the lease you use to make sure that it protects you as much as possible.
When you are a landlord you can’t fall for the sad story when it comes to rent. That’ll kill you financially. Every tenant will have some sad story to tell you why rent hasn’t been paid on time. Sometimes the stories might even be true. Nevertheless, their problems are not your problems. If they can’t pay rent on time consistently, evict them and get a tenant who can. This tenant will string you along as long as you allow it. Serve the tenant with an eviction notice and you might be surprised how fast the tenant can come up with the money.