[jay2utoo]

My mother is a senior citizen and rents at an apartment complex. She's been there since 1999. When moved in rent was $329. Now her rent is $492 and there is a $50 late fee imposed after the fifth of each month and a $75 charge on returned checks.

Is this legal?

[ScottGem]

Laws vary from area to area. So asking is something is legal without telling us where makes it impossible to answer. However, few area regulate late fees for rentals. Generally this is listed in the lease.

[twinkiedooter]

I'm sure it is in the lease she signed for the $50 late fee and the $75 returned check fee.

[jay2utoo]

She lives in the state of Alabama. I've done further research and have learned that even if you sign a lease agreeing to pay, the amount of fees must be reasonable--in the range of about .05 percent of the rent amount.

[ScottGem]

She lives in the state of Alabama. I've done further research and have learned that even if you sign a lease agreeing to pay, the amount of fees must be reasonable--in the range of about .05 percent of the rent amount.

Where did you read this?

[JudyKayTee]

Interesting question - I find reference to several States, including Alabama, in which Courts have found "unreasonable" late charges to be illegal. I find one case which found a 10% charge (based on total rent) to be "unreasonable."

I also find info that if a late fee is to "encourage" (their word, not mine) a tenant to pay rent on time, a "reasonable" late fee is legal; if the late fee is excessive and purely for the purpose of making money it is not legal. I have no idea how a tenant would prove intent - so I would think it goes back to what is excessive.

I find no dollar amounts, no case law, no State law - OP may be referring to a specific case in a specific Court and not State law.

- Interesting question.