Texas Senate Bill SB921

Texas 2017 - 85th Regular

Caption

Relating to a late fee for failing to pay rent under a residential lease.

Impact

The changes introduced by SB921 could significantly impact landlord-tenant relationships and the interpretation of lease agreements across Texas. By limiting the amount landlords can charge in late fees and formalizing when these fees may be applied, the bill seeks to ensure that tenants are more aware of their financial obligations under their rental agreements. It may help alleviate disputes over perceived excessive late fees, which could enhance stability in rental markets and provide tenants with a clearer understanding of their rights.

Summary

SB921 amends the Texas Property Code regarding the imposition of late fees for unpaid rent under residential leases. The bill establishes that landlords can only charge a late fee if it is explicitly stated in a written lease agreement. Furthermore, the initial late fee must not exceed eight percent of one month's rent, with daily fees capped at two percent of one month's rent for each day the rent remains unpaid. This amendment aims to create clearer guidelines around late fees, promoting transparency in lease agreements while protecting tenants from excessive charges.

Contention

Notably, while the bill may provide protections for tenants against arbitrary or excessive late fee practices, it could also draw criticism from landlords. Some landlords may argue that the capping of fees limits their ability to cover losses associated with late payments, potentially impacting their business operations and willingness to rent to certain individuals. The overall balance between tenant protections and landlord rights will likely be a point of discussion as the bill undergoes future legislative scrutiny.