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  1. #1
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    Default Are Late Fees Payable Once Per Month, or Every Day Rent is Late

    My question involves landlord-tenant law in the State of: Arkansas

    My lease states: "LATE CHARGE: A late fee of $25 shall be added and due for any payment of rent made after the 5th of the month."

    My interpretation of this: Any late rent incurs a single late fee of $25, no matter how late it is. I feel I'm reading this at face value.

    Landlord's interpretation: Each day rent is late, I incur an additional $25 fee for each late day until rent is paid.

    I don't see his interpretation given what is written.

    Thoughts?

  2. #2
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    Default Re: Late Fee Clause Interpretation

    Generally a contract reasonably deemed in dispute is decided against the person/company who wrote it.

  3. #3
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    Default Re: Late Fee Clause Interpretation

    I don't understand what you mean.

  4. #4
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    Default Re: Late Fee Clause Interpretation

    Quote Quoting srleslie
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    My question involves landlord-tenant law in the State of: Arkansas

    My lease states: "LATE CHARGE: A late fee of $25 shall be added and due for any payment of rent made after the 5th of the month."

    My interpretation of this: Any late rent incurs a single late fee of $25, no matter how late it is. I feel I'm reading this at face value.

    Landlord's interpretation: Each day rent is late, I incur an additional $25 fee for each late day until rent is paid.

    I don't see his interpretation given what is written.

    Thoughts?
    I can see that being interpreted both ways - sort of.

    Perhaps you should consider though, that if this goes your way instead of the landlord's way, it's virtually guaranteed that your lease will not be renewed unless you sign a new lease clarifying the "late fees".

    Interesting little soundbite: Arkansas is the only State where non-payment can lead to a criminal charge.

  5. #5
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    Default Re: Late Fee Clause Interpretation

    Common sense interpretation - No judge in their right mind is going to approve a late fee of $25 a DAY.

    Gail

  6. #6
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    Default Re: Late Fee Clause Interpretation

    WA has upheld late fees as high as $75/day. Given the lack of rent control, up here it can depend on what kind of day the judge is having. The statute suggests $20 or 20%, but there's no cap.

    (Yes, I know Arkansas isn't Washington )

  7. #7
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    Default Re: Late Fee Clause Interpretation

    Late fees are only due per the terms of a contract. The contract speaks of a (singular) late fee that becomes due if rent is paid after the fifth of the month, not a late fee that is charged each day rent is late. Its not so much a matter of "what kind of day the judge is having", and much more a matter of whether the judge has an IQ above room temperature. I make no promise about the IQ of any given judge, but a court should decide this one in the OP's favor.

    (As an aside, unless rent is exceptionally high, Washington is unlikely to approve a $75/day late fee. See RCW 19.150.150, Buchanan v. Kettner, 97 Wn. App. 370, 984 P.2d 1047 (1999). Buchanan also provides an example of what a late fee clause that includes a daily late fee should look like.)

  8. #8
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    Default Re: Late Fee Clause Interpretation

    Quote Quoting Mr. Knowitall
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    Late fees are only due per the terms of a contract. The contract speaks of a (singular) late fee that becomes due if rent is paid after the fifth of the month, not a late fee that is charged each day rent is late. Its not so much a matter of "what kind of day the judge is having", and much more a matter of whether the judge has an IQ above room temperature. I make no promise about the IQ of any given judge, but a court should decide this one in the OP's favor.

    (As an aside, unless rent is exceptionally high, Washington is unlikely to approve a $75/day late fee. See RCW 19.150.150, Buchanan v. Kettner, 97 Wn. App. 370, 984 P.2d 1047 (1999). Buchanan also provides an example of what a late fee clause that includes a daily late fee should look like.)
    I am in agreement with what you are saying. I paid rent on Jan 18 because I was off work for 4 weeks due to surgery and my STD taking longer than normal to process. Anywho, I am moving out at the end of Feburuary anyways. My issue is do I blatantly refuse to pay the $325 in late fees and chance an eviction (can he evict me for not paying late fees?) or just pay it and not worry about the additional trouble. I've rented for many years, this is my first time dealing with an individual landlord instead of a company and he has been exceptionally rude and difficult when things come up. Arkansas is known as a landlord-friendly state and has few laws to protect tenants.

    - - - Updated - - -

    Can he try to evict me if I refuse to pay the late fees? And what recourse do I have?

  9. #9
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    Default Re: Late Fee Clause Interpretation

    If he tries to evict you, you can defend yourself in court by arguing that he is misinterpreting the lease.

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