If enacted, HB 1109 would amend Section 92.019(a) of the Texas Property Code, which pertains to residential lease agreements. The bill aims to enhance tenant protection by ensuring that fees for late rent payments are not only disclosed but also reasonable and reflective of actual damages incurred by the landlord. This legislative change could potentially reduce conflicts between landlords and tenants regarding the legality and fairness of late fees, benefiting tenants who may face financial difficulties and thus delaying their rent payments.
Summary
House Bill 1109 seeks to regulate the imposition of late fees under residential lease agreements in Texas. The bill explicitly outlines the conditions under which a landlord may charge a late fee for unpaid rent. It requires that the lease must include a notice of the late fee, the fee must represent a reasonable estimate of uncertain damages due to late payment, and payment must be at least one day late before a fee can be applied. This is intended to create fairness in landlord-tenant relationships by establishing clear guidelines about when late fees may be charged, thereby limiting landlords' ability to impose excessive fees without prior notice.
Contention
While the bill is positioned as a measure to protect tenants, it may face opposition from landlords and property management companies who argue that it could limit their ability to enforce timely rent payments and recover losses from late payments. Critics may contend that the restrictions on late fees could undermine landlords' rights to set terms for timely rent payment or could lead to increased rents to offset losses from potential late fees. The debate surrounding this bill highlights the ongoing tension in property law between tenant protection and landlord rights, making it a significant topic for stakeholders in residential leasing.
Relating to verification of identity and employment authorization in connection with certain contracts for or concerning the conveyance of residential real property and residential leases.