85R19708 BEE-F
By: Clardy H.B. No. 1821
Substitute the following for H.B. No. 1821:
By: Villalba C.S.H.B. No. 1821
A BILL TO BE ENTITLED
AN ACT
relating to a late fee for failing to pay rent under a residential
lease.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 92.019, Property Code, is amended by
amending Subsections (a) and (e) and adding Subsection (a-1) to
read as follows:
(a) A late fee under this section may include:
(1) an initial fee; and
(2) a daily fee for each day, not to exceed 15 days,
after the date the rent was originally due that the rent continues
to remain unpaid.
(a-1) A landlord may not charge a tenant a late fee for
failing to pay rent unless:
(1) notice of the fee is included in a written lease;
(2) the initial fee does not exceed eight percent of
one month's rent and each subsequent daily fee does not exceed one
percent of one month's [is a reasonable estimate of uncertain
damages to the landlord that are incapable of precise calculation
and result from late payment of] rent; and
(3) the rent has remained unpaid one full day after the
date the rent was originally due.
(e) This section relates only to a fee, charge, or other sum
of money required to be paid under the lease if rent is not paid as
provided by Subsection (a-1)(3) [(a)(3)], and does not affect the
landlord's right to terminate the lease or take other action
permitted by the lease or other law. Payment of the fee, charge, or
other sum of money by a tenant does not waive the right or remedies
provided by this section.
SECTION 2. Section 92.019(b), Property Code, is repealed.
SECTION 3. Section 92.019, Property Code, as amended by
this Act, applies only to a lease entered into or renewed on or
after the effective date of this Act. A lease entered into or
renewed before the effective date of this Act is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 4. This Act takes effect January 1, 2018.