Landlord Can Charge Late Fee

Tenant complained of a rent overcharge. He claimed that landlord charged him a late fee every month even though he mailed his rent before the 10th day of each month. Tenant also complained that landlord charged a late fee for November 2002 when tenant had told him he might be moving out and that landlord should take the security deposit as the last month's rent. The DRA ruled for tenant and found that landlord should waive the late fees. Landlord appealed. The DHCR ruled for landlord in part. Tenant's lease entitled landlord to collect a late fee. Landlord didn't have to apply the security deposit to the last month's rent. The DHCR had previously ruled that a 5 percent late fee was reasonable. Here, landlord charged tenant a 10 percent late fee. So the DHCR directed landlord to refund half the late fee collected.

Heritage Pl. LLC: DHCR Adm. Rev. Dckt. No. RJ710010RO (3/10/04) [2-pg. doc.]