Posted by Matt on August 03, 2005 at 07:11:38:
I agree with that post…change “late fee” to “additional rent” on the contract. I ‘heard’ that would have helped in a case like yours.
–Matt
Judge refused to all the late fee to the judgement - Posted by Mary Co
Posted by Mary Co on August 02, 2005 at 20:26:49:
Hello all!
We just had a judgement against tenants(Posession and monetary). The judge approved all the amounts but the 6% late charge fee.
He said - why 6%? Why not 15% or 7%? What formula are you using?
I was just using Finkel and Conti lease agreement and have 6% and this is in there.
Anybody in CO knows - may be there is a fixed % for a late fee we have to charge tenants who are late?
Didn’t have this problem bofore by the way.
Please advise
Re: Judge refused to all the late fee - Posted by $-Man
Posted by $-Man on August 03, 2005 at 10:13:48:
I agree with the others, use a rent discount, but in my leases I also included late fees that state statutes or case law allowed. I had an older judge friend in California who told me when he first started renting, the rent was paid at the end of the month, the tenant was paying for the product he received after he got it. But landlords decided paying in advance was a much better method even though they were getting security deposits that would cover unpaid rent.
I equate this to the old custom of paying for your meal after eating it, to now paying in advance and getting your food, it eliminates the eat and run like hell scammer to some degree.
As a judge, he didn’t want a penalty applied to something that hadn’t been earned, the remaining rent. He considered it a forefiture, and the law generally abhors this.
So my advice is to go to the discount plan, and go to your local law library and check the law on late fees to see what you can do there, and then if you need to get a judgement you can note the reference on your filing.
Judge refused to add late fee to the judgement - Posted by Dave T
Posted by Dave T on August 03, 2005 at 08:46:45:
The landlord tenant laws in my state set the maximum late fee at 5% of uncollected rent.
My lease agreement assesses the late fee as additional rent.
suggestion… - Posted by Sean
Posted by Sean on August 03, 2005 at 07:49:03:
Don’t know about CO, but in PA no magistrate will grant you late charges.
Change your lease to have a DISCOUNT, IE rent is 700, but if its paid by the 5th you get a discount of $50… making the effective rent $650 a month… and if they are late you aren’t charging them a late fee, they just don’t get the discount.
This will hold up in court.
Re: Judge refused to all the late fees - Posted by Killer Joe
Posted by Killer Joe on August 03, 2005 at 01:44:54:
Hi Mary,
You said…“He said - why 6%? Why not 15% or 7%? What formula are you using?
I was just using Finkel and Conti lease agreement and have 6% and this is in there.”
Did you argue, “Your honor, the late fees including the 6% late charge were agreed to in the rental contract. All parties agreed.”
I’m not a lawyer, I’m not a stranger to the legal system either, this is just what life has tought me. A question from the bench is an open dialog that needs closure. Your response should close that dialog with a plausable explanation. Btw, this is a subject you could post about on the legal board as well. There are some great legal minds on this site. (I’m not one of them.) Much success.
KJ
change Lease - Posted by Jon
Posted by Jon on August 02, 2005 at 20:40:03:
You need to change late fee to additional rent in your lease
Re: change Lease - Posted by Mark (SDCA)
Posted by Mark (SDCA) on August 03, 2005 at 09:15:32:
Oy… I would love to hear Bronchick weigh in on this. I can’t imagine how or why this would work. Rent is a per diem fee for using the property (like a hotel for example). Why would paying late mean additional rent was due. Of course, the rent for the days they have acutally used the property is due. But it doesn’t sound like that is what you mean.
Re: change Lease - Posted by Mary CO
Posted by Mary CO on August 02, 2005 at 20:47:44:
How do I know which amount is appropriate as a late fee in Colorado?
Does anybody have a good clause concerning a late fee?
Re: change Lease - Posted by Mary CO
Posted by Mary CO on August 03, 2005 at 09:39:52:
I agree with this. Rent discount is reasonable and I have that in the lease. A good tenant discount.
But the late fee is additional something for being late. I remember the judge telling us we can charge as much as 18% in CO and may be he was upset we were not charging this. Or may be I am being mistaken. Have to find a lawyer who understands all this and is reasonable.