| 1 | 1 | | 86R10258 TYPED |
|---|
| 2 | 2 | | By: Phelan H.B. No. 1519 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to fees regarding a residential tenant's failure to timely |
|---|
| 8 | 8 | | pay rent. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 92.019, Property Code, is amended by |
|---|
| 11 | 11 | | amending Subsections (a), (b), and (c) and adding Subsections (a-1) |
|---|
| 12 | 12 | | and (a-2) to read as follows: |
|---|
| 13 | 13 | | (a) A landlord may not collect from [charge] a tenant a late |
|---|
| 14 | 14 | | fee for failing to pay any portion of the tenant's rent unless: |
|---|
| 15 | 15 | | (1) notice of the fee is included in a written lease; |
|---|
| 16 | 16 | | (2) the fee is [a] reasonable considering that |
|---|
| 17 | 17 | | [estimate of uncertain] damages resulting from the late payment of |
|---|
| 18 | 18 | | rent to the landlord [that] are incapable of precise calculation |
|---|
| 19 | 19 | | and result from late payment of rent; and |
|---|
| 20 | 20 | | (3) any portion of the rent has remained unpaid one |
|---|
| 21 | 21 | | full day after the date the rent was originally due. |
|---|
| 22 | 22 | | (a-1) To determine the damages described by Subsection |
|---|
| 23 | 23 | | (a)(2), a landlord may consider any direct or indirect expenses |
|---|
| 24 | 24 | | related to the tenant's late payment incurred by the landlord, |
|---|
| 25 | 25 | | including direct or indirect costs, expenses, or overhead |
|---|
| 26 | 26 | | associated with the landlord's process established to collect late |
|---|
| 27 | 27 | | payments. |
|---|
| 28 | 28 | | (a-2) A late fee collected from a tenant of an apartment |
|---|
| 29 | 29 | | house complies with Subsection (a)(2) if the late fee does not |
|---|
| 30 | 30 | | exceed the greater of $150 or ten percent of the amount of rent for |
|---|
| 31 | 31 | | the rental pay period under the lease. For purposes of this |
|---|
| 32 | 32 | | subsection, "apartment house" means a building that contains five |
|---|
| 33 | 33 | | or more dwelling units. |
|---|
| 34 | 34 | | (b) A late fee under this section may include an initial fee |
|---|
| 35 | 35 | | and a daily fee for each day any portion of the rent continues to |
|---|
| 36 | 36 | | remain unpaid, and the combined fees are considered a single late |
|---|
| 37 | 37 | | fee for purposes of this section. |
|---|
| 38 | 38 | | (c) A landlord who violates this section is liable to the |
|---|
| 39 | 39 | | tenant for an amount equal to the sum of $100, three times the |
|---|
| 40 | 40 | | amount of the late fee collected [charged] in violation of this |
|---|
| 41 | 41 | | section, and the tenant's reasonable attorney's fees. |
|---|
| 42 | 42 | | SECTION 2. This Act takes effect September 1, 2019. |
|---|