[RPPTL Leasing Committee] Fines and Fees

Thu Jan 28 07:01:34 PST 2021

Dear Deborah,

Racking up fines or fees and then dropping them all into a charge from the Security Deposit is problematic as well.

Often I see property managers deduct hundreds of dollars in accumulated late fees from the deposit when a lease is over. Not only does this seem wrong but then the overage if any gets sent off to a collection agency where the tenant’s credit is damaged.

My feeling on noncompliances is that they should be dealt with using the Seven Day Notice to Cure as has been the case for decades.

For example, I see fees and fines if there is an unauthorized occupant found on the premises or a dog found on the premises even for a few days.  How do they justify picking an amount of say $500 for this?   The law allows for the Seven Day Notice to Cure.  Something seems off with a “fee” or a “fine” in addition to the fact that it is a lease noncompliance.  Especially if that fee or fine will be carried through to the end of the lease and sucked out of the Security Deposit.   If acceptance of rent after a noncompliance can create a potential waiver argument, is not the fine or fee possibly waived as well? 

Harry

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From: landten-bounces at lists.flabarrpptl.org <landten-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL Real Estate Leasing Committee
Sent: Thursday, January 28, 2021 9:24 AM
To: RPPTL Landlord Tenant Committee <landten at lists.flabarrpptl.org>
Subject: Re: [RPPTL Leasing Committee] Fines and Fees

I think part of the problem is that when the tenant does these things and an Association or Vendor contacts the Landlord because of non-compliance with rules there is a real cost to Landlords (many if not most of whom do not have management companies on flat fees to handle this.) And, as noted in prior response, sometimes there is a real cost such as a missed appointment fee or an Association fine- but even if it is responding to the Association letter that response is because the tenant breached the terms of their lease so the question is who pays for that- the tenant that breached or the Landlord who has to expend time (which is money) and sometimes money to deal with it.

Most leases have the ability to fee shift if an attorney is involved in any form of enforcement. If there is nothing that allows for a more minor charge to be made, then the Landlord is going to end up sending each one of these to legal and billing the tenants for the necessity of handling these issues which are not "no foul" if they take up Landlord time.

A piece of me likes having the Tenant know that if they do something specific that the wrong will be met with a fine or a fee and set out what that is. It makes it less subjective and enforces the seriousness of following rules. If it is always "no harm no foul" then the tenant can just ignore the rules and inconvenience the landlord repeatedly. I do not see the concept of specific fines or fees as impermissible or illegal so long as they bear a reasonable and rational relationship to the costs incurred from the breaches.

My client's will ALWAYS bill out of pocket things like Association fines that were levied or missed appointment fees. Where it comes to the other, there is usually a warning letter the first time with included language that the next letter will come with the legal responsibility for the costs. I may talk to them about a schedule of fines/fees to be applied.... hadn't considered that before! Ultimately, the likelihood is that they will just erode security deposits.

Deborah Marks, PLLC

18495 S. Dixie Highway
Ste 134

Miami, FL 33157
305-372-9400

deborahmarkslaw at gmail.com <mailto:deborahmarkslaw at gmail.com> 

deborah at deborahmarks.law <mailto:deborah at deborahmarks.law> 
synergy928 at aol.com <mailto:synergy928 at aol.com> 

On Wed, Jan 27, 2021 at 6:20 PM RPPTL Real Estate Leasing Committee <landten at lists.flabarrpptl.org <mailto:landten at lists.flabarrpptl.org> > wrote:

There’s a big move nationwide to put all kinds of fines and fees in a residential lease.

Don’t pick up your dog’s poop, a fine.  Miss an appointment with a repair person, a fee.  Tamper with the smoke detectors, a fine. Leave your garbage cans out, a fine.  HOA writes a letter to the owner, a fine. Parking violation, a fine. Bring a pet on the property, a fine. We have to serve you a Three Day, a fee. 

What do you all feel about the legality of fees and fines?

Florida law does not really address them and rarely have I seen them in residential leases except for late fees and bad check fees.

There are a few states that specifically disallow fees and fines.  The whole property management industry seems to be pushing the envelope and clients ask me WHY something is not legal and I’m basically at a loss.

How would you argue for or against a fee or fine in court?  I can’t stand them but the clients really push it. 

Harry 

LAW OFFICES OF 
HEIST, WEISSE & WOLK P.A.
PH: 1 800 253 8428
FAX: 1 800 367 9038
"Serving the Property Management Professional"
Website:   <http://www.evict.com/> www.evict.com 
Email:  <mailto:harry at evict.com> harry at evict.com

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