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The LPA Newsletter
August 5, 2014
Dear Fellow Landlord,
I'm sure we all agree that late fees are meant to discourage late rent. Although I think it is important to enforce and collect them, they are not intended as an additional stream of income. But then again, some tenants insist on paying a late fee every month, and others refuse to pay it no matter how many late notices you give them. We have ways to handle that too.
- Late Fee Enforceable?
- FREE EPA Lead Paint Disclosure and Booklet!
- Ask the Attorney, Real Estate Attorney, John Reno
- Success Quotes
Please e-mail us if you have any questions or would like to add or share any material / information. Have a great month!
John Nuzzolese
John@theLPA.com
"In the landlord business, the cheap way is often more expensive in the long run." - John@theLPA.com
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Is My Late Fee Enforceable?
 To be enforceable, Late fees must be considered reasonable in the eyes of the court and must not exceed the amount of the debt.
While many landlords don't charge enough in late fees, others go a bit overboard in collecting late charges. I know a few owners who spend a fair share of their daily time pursuing past due late fees. I recently had a student who had a tenant who owed accumulated late fees equivalent to approximately 3 times the total rent... and it was paid! He charged the tenant daily late fees each month continuously throughout the year with the months of daily charges overlapping. I'd hate to see him explain those calculations to a judge.
Most states have a statutory limitation on late fees, and when challenged, all state courts will limit them if the judge feels they are too high.
Some frequent questions are,
- "But what about if the tenant agrees to a higher late fee in the lease?"
My answer would be to keep it reasonable and keep the state limitations in mind. These things rarely become an issue, since it is one of the terms of the lease in which the tenant has given his word of honor and signature of agreement and approval. It is usually when you are in court with your tenant for other reasons that everything unenforceable in your agreement is then challenged.
- "I charge a higher late charge than my state's limit. Will I have a problem collecting those fees?"
Usually not in most tenancies, but it will become an issue if your late fees are challenged in court. In court I've seen late fees either reduced or completely eliminated by the judge.
Most landlords go to court with tenants for two reasons:
1. To kick the tenant out for non-payment or holdover in Eviction Court and
2. To settle disputes between the parties which may be for security deposits, damages, etc. in Small Claims Court.
One thing I learned is that a judge in eviction or small claims court is going to decide what he or she feels is reasonable according to the law. Keep in mind that there is a difference between "illegal" and "unenforceable".
The whole idea of the late fee is to encourage rent payments to be paid on time. A penalty fee should be enough to make paying late unpleasant and not so little that the tenant will be comfortable incurring late fees. Late fees should not be looked to as an additional stream of income, but as a deterrent to late payments!
Below are some links on limitations and the subject of Late Fees....
Late Fee - Related Stories
State Limitations on Late Fees and Lease Inserts
The LPA Lease Clause # 3, Late Fees
How to Enforce Late Fees
when the Tenant won't pay them willingly
LPA Essential Form: The Urgent Late Notice
LPA Essential Form: Rent Paid On Time Addendum
Landlord Tenant Law - State by State
Ask the Attorney John Reno
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Do You Comply with Federal Lead Paint Disclosure Regulations?
Free Lead Paint Disclosure and Booklet
 Lead Paint Disclosure
This free form is now required by HUD on all housing built before 1978. Landlords and real estate agents must disclose whether or not they have knowledge
of the existence of any lead base paint hazards on the premises.
Click here for Spanish version
EPA Lead Paint Booklet
This booklet explains to tenants in detail all the hazards associated with lead paint. It must be given to tenants when they rent pre-1978 real estate. You can view the entire booklet here through Adobe Acrobat Reader. You can also print it on normal letter size paper and put the booklet together. After printing, you can also reproduce larger quantities of it on a copy machine in color or in black and white.
Click here for Spanish version
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Housing Discrimination
Lately, many people have been confused over whether they are allowed to discriminate against tenant prospects based on certain factors such as criminal history, profession, source of income (section 8, DSS, tips, off the books money, etc.)
In case you're wondering about the fair housing rules, and what landlords are prohibited from discriminating against, here
is the list according toThe U.S. Department of Housing and Urban Development (HUD).
The U.S. Department of Housing and Urban Development (HUD)says
The Fair Housing Act prohibits discrimination in housing on the basis of:
- Race or color
- National origin
- Religion
- Sex
- Familial status (families with children)
- Disability
There is more to Anti- Discrimination Laws on the State level as well.
Please see
Housing Discrimination Prohibited by State and Local Law
State or local fair housing laws may forbid some types of discrimination that federal law doesn't cover. by: Marcia Stewart
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Ask the Attorney
 The Landlord Protection Agency® presents John Reno, Esq., a highly experienced Landlord - Tenant attorney based on Long Island, NY.
John Reno also does Mortgage Loan Modifications (Nationwide).
(Mention The LPA for a 10% discount!)
Dear Mr. Reno:
If a tenant left the house two weeks ago and left some belongings there. What can a landlord do??
Maria, Illinois
A: What are "some belongings"? That's the key. If we're talking valuables, that's a problem.
If you have a landlord tenant problem you'd like to ask a question about, please feel free to e-mail me your question.
Submit a landlord / tenant question for Mr. Reno
Please try to keep your questions as short and to the point as possible.
Read more from John Reno, Eviction Attorney
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Wealth Secrets and Success Quotes
"The best way to avoid tenant problems is to avoid problem tenants." - John @ The Landlord Protection Agency, Inc.
"You must begin to think of yourself as becoming the person you want to be."
"Most people struggle financially because they take advice from sales people, not rich people." - Robert Kiyosaki
"Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned." - Buddha
"How much did your last tenant problem cost you? Was it less than $89.99?" - John Nuzzolese, The Landlord Protection Agency
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LPA Membership Expiring?
Take Advantage of our low Renewal Prices!
How to Check your LPA Membership Expiration Date:
- Be logged in with your LPA username & password
- On the "Main Menu" (top right), click on "Your Orders" (right below your name)
- The beginning date of your membership will be listed to the left of your membership order # in this format: YYYYMMDD
*Your Membership Expired? No Problem!
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FREE Tenant Credit Reporting
(LPA Membership Bonus Feature)
Have you ever been beaten by a tenant on the rent?
Most of us have and unfortunately, it is one of the costs of doing business as a landlord.
On the bright side, remedies are available. If you have documented your tenancy with the proper paperwork including a rental application, lease agreement, late notices, etc., you may have a chance of collecting.
Credit bureau reporting is an option in which many modern landlords are beginning to participate....
Click here for the full article
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If you haven't already, please take the opportunity to sign up for The LPA's Quick Check Credit Reports! Quick Check is a simple, fast way to access online credit reports while saving you money!
- NO sign-up or set-up fees,
- NO membership fees,
- NO compliance fees
- Just lower prices!
Special Tenant Screening Discounts for LPA members!
See our price list!
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LPA Members, Interested in past LPA Newsletters?
Feel free to view the LPA Newsletter Archive
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What are people saying about The Landlord Protection Agency?
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