Texas House Bill HB1519

Texas 2019 - 86th Regular

Caption

Relating to fees regarding a residential tenant's failure to timely pay rent.

Impact

The bill amends Section 92.019 of the Texas Property Code, making it necessary for landlords to justify their late fee structures by considering reasonable expenses associated with delayed rent payments. Furthermore, for larger rental properties classified as apartment houses (those with five or more units), the maximum allowable late fee is pegged at either $150 or 10% of the owed rent amount. This adjustment is designed to standardize how late fees can be imposed and to prevent potential abuse by landlords.

Summary

House Bill 1519 introduces new regulations concerning late fees for residential tenants in Texas. According to the bill, landlords are restricted from charging late fees without prior written notice included in the lease agreement. Additionally, the bill establishes parameters for what constitutes a reasonable late fee, allowing landlords to charge fees only after the rent has remained unpaid for at least one full day. This change aims to protect tenants from excessive and unanticipated fees that could arise due to late payments.

Contention

Debate around HB1519 may arise concerning the balance of power between landlords and tenants. While supporters argue that the bill offers essential protections for tenants, critics might contend that the provisions could reduce landlords' flexibility in managing their properties, particularly in how they handle late rent payments. The discussions may touch on whether the limits on late fees are adequate to incentivize timely payments or if they could inadvertently lead to financial strain on landlords absent of punitive measures for repeat late payments.