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Can a Landlord Charge a Late Fee if a Rent Check is Lost in the Mail

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  • 01-13-2016, 08:43 AM
    Socalant
    Can a Landlord Charge a Late Fee if a Rent Check is Lost in the Mail
    My question involves landlord-tenant law in the State of: CA
    Background: I've been in my home that is rented for 9 years. The original lease had a paragraph about late fees. It stated that if the rent is not paid within three days after it is due, a $150 late fee will be charged, along with a charge of $30 per day starting at the beginning of the month (excessive?).
    My question is, I received an email from the landlord yesterday (12th of the month) stating that my check was never received, and that I owed the $150, plus $30 per day since the first of the month.
    I have my carbon copy from my check book showing the check I wrote, as with every month for the last 9 years.
    Am I legally responsible for the USPS losing my check? Also, when is it reasonable for the landlord to contact me to let me know that he hadn't received my rent payment? I assume that after the fourth of the month, if no payment is received, they would tell me immediately so I can rectify the situation if late fees are beginning to be charged. Is it ethical to wait until the 12th before telling me? I had no way of knowing that my check wasn't received, otherwise I would have been proactive in replacing it to reduce any unnecessary fees to be incurred. It is normal for my check to be deposited from the 10-12th of the month, so I had no idea that fees were piling up.
    How can a landlord justify charging for this time, when I know there is no way that he himself is not incurring these kind of fees as a loss because of this situation.
    What should I do?
  • 01-13-2016, 08:45 AM
    Ohiogal
    Re: The Ethics of Charging Late Fees for a Lost Check
    You might want to check to see if those fees are allowable. They may be considered too high. But yes, you are responsible for making sure your check is received.
  • 01-13-2016, 08:53 AM
    Socalant
    Re: The Ethics of Charging Late Fees for a Lost Check
    While doing some research on late fees, I found the Orozco case that ended in favor of the renter because the landlord did not show a loss that justified the late fee. The fees were found to be invalid. Because of this, does it fall on the landlord to show a loss of this much money to be owed it?

    Quote:

    Quoting Ohiogal
    View Post
    You might want to check to see if those fees are allowable. They may be considered too high. But yes, you are responsible for making sure your check is received.

    How can I find out if its allowable? That's why I'm here!
  • 01-13-2016, 09:03 AM
    Mr. Knowitall
    Re: The Ethics of Charging Late Fees for a Lost Check
    You're referencing Orozco v. Casimiro (2004), 17 Cal.Rptr.3d 175, 121 Cal. App. 4th Supp. 7.

    The late fee you're describing, to me, sounds like it is far in excess of what a landlord might describe as a reasonable estimate of his damages, as opposed to being punitive in nature. If your landlord does not agree and voluntarily waive the late fee, your most obvious choices are to refuse to pay and, should the landlord attempt to evict you, argue that to the court and hope that the court agrees, or to pay the late fee and try to recover the payment in small claims court, perhaps filing at the conclusion of your tenancy.
  • 01-16-2016, 10:12 AM
    Socalant
    Re: The Ethics of Charging Late Fees for a Lost Check
    Everything I have found while researching this is that late fees are illegal to charge. All a landlord can ask for are recoverys of out of pocket costs or bank interest lost(I still don't know if this is valid) for a returned check. If payment isn't received, all a landlord can do is file a 3 day notice to pay or quit. There is no way to justify the monies charged for just being late. To keep the peace, I payed the late fee. But yes, I see that it should be considered overpaying and will ask for it back when the time comes.
  • 01-16-2016, 10:51 AM
    Mr. Knowitall
    Re: The Ethics of Charging Late Fees for a Lost Check
    No, as Orozco plainly indicates, late fees are legal to charge, based upon administrative costs to the landlord:
    Quote:

    Quoting Orozco v. Casimoro
    Appellant argues that, notwithstanding such language, late fee provisions in a residential lease are never valid, since the landlord is only entitled to interest on the late-paid rent as damages, which is easily ascertainable as a matter of law. Appellant's legal premise, however, is simply wrong. A landlord is not limited to interest as damages as a consequence of the late payment of money. He is also entitled to "'administrative costs reasonably related to collecting and accounting for'" late payments.

    The issue with the late fees you describe is that they are excessive.
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