S.B. No. 1414
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 Subsection (a-1)
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 tenant's 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 tenant's rent has remained
unpaid two [one] full days [day] after the date the rent was
originally due.
(a-1) For purposes of this section, a late fee is considered
reasonable if:
(1) the late fee is not more than:
(A) 12 percent of the amount of rent for the
rental period under the lease for a dwelling located in a structure
that contains not more than four dwelling units; or
(B) 10 percent of the amount of rent for the
rental period under the lease for a dwelling located in a structure
that contains more than four dwelling units; or
(2) the late fee is more than the applicable amount
under Subdivision (1), but not more than uncertain damages to the
landlord related to the late payment of rent, including direct or
indirect expenses, direct or indirect costs, or overhead associated
with the collection of late payment.
(b) A late fee under this section may include an initial fee
and a daily fee for each day any portion of the tenant's 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. Subchapter A, Chapter 92, Property Code, is
amended by adding Section 92.0191 to read as follows:
Sec. 92.0191. STATEMENT OF LATE FEES. A tenant may request
that the landlord provide to the tenant a written statement of
whether the tenant owes a late fee to the landlord and, if so, the
amount of the late fee. On request of the tenant, the landlord
shall provide the statement to the tenant by any established means
regularly used for written communication between the landlord and
the tenant. A landlord's failure to respond does not affect the
tenant's liability for any late fee owed to the landlord.
SECTION 3. 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 4. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1414 passed the Senate on
April 17, 2019, by the following vote: Yeas 26, Nays 5; and that
the Senate concurred in House amendment on May 23, 2019, by the
following vote: Yeas 27, Nays 4.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1414 passed the House, with
amendment, on May 21, 2019, by the following vote: Yeas 94,
Nays 52, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor