Hi , I have an option to buy a house in NC. Rent in $900.00. If you are one day late he charges 10% of rent . $90.00. Then every day charges $5.00 per day until you pay the rent Is this legal? Thanks:mad:

Are you renting with an option to buy?

Yes, that is what I am doing, sorry I did not include that major part.

I got ribbed for giving this answer to someone else but here goes. It depends.

So much depends on how many properties your landlord operates. If under 10 (I think - will have to double check) then he doesn't fall under federal rental guidelines and has more latitude than professional landlords.

My mortgage company charges 5% of my mortgage payment if it is late so his charge doesn't sound that out of line. Please remember many small-time landlords need your monthly payment to make the mortgage. Here in VA a landlord can start eviction proceedings if you haven't paid by the 6th day after the due date.

It sounds heartless, but after watching the misery my best friend went through being the property manager of a 400 unit apartment complex I can see why so many landlords have such stringent payment requirements. If they don't have monetarily punitive rules then they never get paid. Tenants will string out the promises to pay until the proverbial cows come home. Also sometimes the renter skips out in the middle of the night leaving a mess and more often than not, destruction too.

I bet NC has a state run website that will give you a guideline to your rights as a tenant.

~Em

He can only charge you the late fees stated in your lease. If you agreed to these fees then its legal. Re-read your lease. This guy sounds like a jerk, he'll get go again if you buy from him.

Hello scoob:

"North Carolina Statutes, Chapter § 42 14.1. Rent control. No county or city as defined by G.S. 160A 1 may enact, maintain, or enforce any ordinance or resolution which regulates the amount of rent to be charged for privately owned, single family or multiple unit residential or commercial rental property. This section shall not be construed as prohibiting any county or city, or any authority created by a county or city for that purpose, from:
(1) Regulating in any way property belonging to that city, county, or authority;
(2) Entering into agreements with private persons which regulate the amount of rent charged for subsidized rental properties; or
(3) Enacting ordinances or resolutions restricting rent for properties assisted with Community Development Block Grant Funds. (1987, c. 458, s. 1.)"
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If there is no rent control in North Carolina, there certainly isn't “late fee” control. Therefore, if your lease says he charge that amount, he certainly can.

excon

So much depends on how many properties your landlord operates. If under 10 (I think - will have to double check) then he doesn't fall under federal rental guidelines and has more latitude than professional landlords.

What are "federal rental guidelines"?

There are various rules landlords have to follow under HUD.

Most of these apply to large unit numbers such as how many days a landlord has to address repair of a problem that a renter has with the property and how many days a renter has to correct a problem (like a broken down car) before the landlord can take action, etc.

There are various rules landlords have to follow under HUD.

Most of these apply to large unit numbers such as how many days a landlord has to address repair of a problem that a renter has with the property and how many days a renter has to correct a problem (like a broken down car) before the landlord can take action, etc.

The only federal laws I've ever seen applied to landlords are the laws against discrimination (enforced by state agencies) and the laws regarding access for the disabled (also enforced by state agencies).

I've never seen any federal laws applied to landlords concerning things like repairs. They are always state or municipal laws.

Hi , I have an option to buy a house in NC. Rent in $900.00. If you are one day late he charges 10% of rent . $90.00. Then every day charges $5.00 per day until you pay the rent Is this legal?. Thanks:mad:

As noted, the late fees don't appear to be way out of line. And, shouldn't be illegal. They SHOULD, however, have been spelled out in your contract.

I will add that these contract to buy deals are sometimes on the shady side. Did you give a downpayment towards the purchase? The frequent scenario here is that the landlord WANTS you to default on the contract. He then gets to keep your down payment and proceeds to resell the house to someone else. The more down payments he can get the more money he makes off the house.

Usually in NC it is 5% 75$ maximum. Yes it is a screw job. But it is a local thing and as the con stated there are no state laws on rent.

Here's a helpful link to anyone that rents. Renting - HUD (http://www.hud.gov/renting/)

Lease options are not really lease agreements so L-T laws usually don't apply... You should have your lease option or rent to own contract reviewed by an attorney.