Landlord Can't Charge Tenant Legal Fees Without Court Order

Tenant complained of rent overcharge based on late fees and legal fees charged by landlord based on tenant’s late payment of rent. The DRA ruled against tenant, finding no overcharge. Tenant appealed and lost. The DRA correctly ruled that landlord was entitled to collect late fees under tenant’s lease if rent wasn’t paid within five days of the due date. Landlord also had removed legal fees from tenant’s rent bill. A landlord may not charge legal fees or include such fees in tenant’s billing statement unless the legal fees have been ordered by a court. If landlord collects legal fees from tenant without a court order in the future, tenant can file an overcharge complaint.

Baptiste: DHCR Adm. Rev. Docket No. DN210024RT (7/30/15)