Legal Question in Real Estate Law in Massachusetts
rental agreements
My tenant says that it is illegal to charge a late fee of $7.00/day when he is late in paying the rent. It is written on the rental lease he signed. He is late every month. He says I can't charge a late fee for for 30 days and then it has to be a one time, one charge only.
Thank you for your help with this
Terri
1 Answer from Attorneys
Re: rental agreements
From the Attorney General's website:
Late Payment Penalty
You may not charge a late fee or penalty for rent paid past the due date unless it is paid 30 days or more past the due date. A reverse penalty to encourage early payment is also illegal. For instance, where you promised to reduce the rent by 10 % if the rent is paid within the first five days of the month, this is an illegal provision (940 CMR � 3.17 (6)(a). However, because there is no �grace period,� you may begin eviction if the rent is only one day late.
I.e., you may have provisions in your lease which are unenforceable. You should review the information available on the AG's website to see if you are in compliance.
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