86R11335 PMO-F
By: Hancock S.B. No. 1414
A BILL TO BE ENTITLED
AN ACT
relating to fees regarding a residential tenant's failure to timely
pay rent.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 92.019, Property Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsections (a-1)
and (a-2) to read as follows:
(a) A landlord may not collect from [charge] a tenant a late
fee for failing to pay any portion of the rent unless:
(1) notice of the fee is included in a written lease;
(2) the fee 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) any portion of the rent has remained unpaid one
full day after the date the rent was originally due.
(a-1) To determine the fee described by Subsection (a)(2), a
landlord may consider any direct or indirect expenses related to
the tenant's late payment incurred by the landlord, including
direct or indirect costs, expenses, or overhead associated with the
landlord's process established to collect late payments.
(a-2) Notwithstanding Subsection (a)(2), if a tenant's
dwelling is located in a building that contains five or more
dwelling units, a landlord may not collect from the tenant a late
fee for a rental period that is more than the greater of:
(1) $150; or
(2) 10 percent of the amount of the rent for the rental
period.
(b) A late fee under this section may include an initial fee
and a daily fee for each day any portion of the rent continues to
remain unpaid, and the combined fees are considered a single late
fee for purposes of this section.
(c) A landlord who violates this section is liable to the
tenant for an amount equal to the sum of $100, three times the
amount of the late fee collected [charged] in violation of this
section, and the tenant's reasonable attorney's fees.
SECTION 2. Section 92.019, Property Code, as amended by
this Act, applies only to a late fee under a lease entered into or
renewed on or after the effective date of this Act. A late fee under
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 3. This Act takes effect September 1, 2019.