My lease provides for $15 per day late fees. Once I pay the RENT due, can the landlord continue to accrue late fees ON the late fee? For example, rent is $600. I am 4 days late ammounting to $60 late fees. The TOTAL now due is $660. I paid the $600 rent but not the $60 late fees. Can late fees continue to accrue on the $60? Or do the late fees stop since the principal amount of rent was paid?
Real Estate Attorney
Good question. This will depend on how the lease is written.
I may be guessing or not licensed in your state. No atty/client relationship exists.
I agree with Mr. Weinman. The lease should give you the answer. If it is not clear from the lease, then I would argue that he is not entitled to late fees upon late fees. You might also have an argument that the charges are usurious. You might not win on that, but there is a criminal usury statute in Michigan. If that applies, the landlord could be looking at jail time and a huge fine. If I was your landlord, I would not want to test that statute.
***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!