What are a tenant's rights regarding late payments?
In Texas, a tenant’s rights regarding late payments are outlined in the Texas Property Code. Generally speaking, a tenant must pay rent on or before the day it is due, as noted in the lease agreement. If late payments are made, the landlord has the right to charge a penalty or late fee. There are certain limitations on late fees, including that a late fee cannot exceed 5% of the amount of the rent due, and charges for late payment cannot be imposed until the rent is at least five days late. The landlord must also provide written notice to the tenant prior to charging the penalty fee, and the notice must include the amount of the late fee. The landlord cannot terminate the tenancy or take any other retaliatory action against a tenant for a late payment, unless the late payment is more than five days overdue. If the tenant does not pay the rent and the late fee by the fifth day after receiving written notice, the landlord is then able to give the tenant a three-day notice to vacate. On the other hand, tenants have the right to dispute late fees if they believe they have been wrongly charged. Tenants should first contact the landlord in writing to dispute the late fee, and if the landlord does not respond or refuses to waive the fee, the tenant can file a complaint with the Texas Department of Housing and Community Affairs or with a local consumer protection agency.
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