[RPPTL LandTen] HB 921 and Late Fees

[Harry Heist]

2 items:

 

HB 921/SB 1830: Senator Anitere Flores is the Senate sponsor and is the
Chair of the Judiciary Committee and Representative Stargel is a rental
housing owner/manager. This will probably be a bill that will not die
easily. It will move along.

 

Where does the Bar stand on this bill? Where does FAR stand? Where does
Legal Services stand? As attorney for the Florida Apartment Association, we
are having a call on this Friday.   Hopefully everyone can come to an early
consensus to avoid time consuming stuff and fighting later unless it is
decided that this should be killed and a real proper re-write done next year
where we all start early, sit at a table with all groups and get something
we all can agree on. (You can tell I like that idea). 

 

Late Charges: I generally see $35 to $100 and sometimes up to 10%.  An
"average" rent is about $800.  

 

It technically is not usury as it is not a loan but a good argument can be
made. I have seen it made in pleadings but never had it litigated.

 

The per diem late charges really give us a headache and can skyrocket the
APR so to speak.

 

Please chime in on your thoughts. Once these bills begin rolling, they
really take up a lot of resources.

 

Harry

 

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From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Greg Hass
Sent: Wednesday, January 11, 2012 1:32 PM
To: RPPTL Landlord Tenant Committee
Subject: [RPPTL LandTen] residential lease late fees

 

Our FAR "Residential Lease for Single Family Home or Duplex" has a Section 6
dealing with late fees.  It has blanks to be filled in for both the amount
of the late fee and the number of days after rent is due that it becomes
"late".  If left blank, the default setting is 4% of the rent payment for
each rent payment made 5 days after the rent is due if paid monthly.

 

I'm curious to hear what the committee members thoughts are as to what the
maximum the late fee can be before it is deemed unconscionably high/usury by
a judge and rendered unenforceable - has anyone seen any cases on this?

 

Thanks,

Greg

 

Greg Hass, Senior Counsel

 

Office of Law & Policy | FloridaRealtorsR
7025 Augusta National Drive, Orlando, FL 32822
talk: 407.438.1400, ext. 2421
visit: http://www.floridarealtors.org

 

The Voice for Real EstateR in Florida


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