Hiring of real property: tenants: late fees.
The implementation of AB 2774 would directly affect the financial relationship between landlords and tenants in California. By instituting a cap on late fees, the bill seeks to prevent landlords from imposing excessive charges that can exacerbate financial difficulties for tenants. Furthermore, by not superseding laws or regulations related to housing assistance programs at the federal or state level, the bill carefully navigates existing legal frameworks to ensure that vulnerable populations still receive necessary protections.
Assembly Bill 2774, introduced by Assembly Member Jones-Sawyer, aims to amend California's Civil Code by adding Section 1950.10, which regulates late fees in rental agreements. Specifically, the bill stipulates that landlords or their agents cannot charge tenants a late fee exceeding $50 for delayed rent payments. This bill is particularly significant as it seeks to provide some financial relief to tenants, who may be facing economic challenges, by capping potential penalties for late payments, a common issue in rental agreements.
However, the bill may face contention from landlords and real estate advocates who argue that a $50 cap might not suffice to address the administrative costs and risks associated with late payments. Critics of the bill may express concerns about its potential implications for rental markets, fearing that limiting late fees could discourage property owners from renting out their properties due to perceived financial risks. This underlying tension illustrates the balancing act legislators must perform in protecting tenant rights while also considering the operational realities faced by landlords.