Georgia's Landlord and Tenant Laws on Maximum Late Fees
A tenant may fall behind on rent due to tough times or simply refuse to pay rent because of a dispute with the landlord. If the tenant later pays, the landlord may still be able to charge a late fee. Georgia law does not set the amount of the late fee. Rather, the tenant and landlord must look to their lease agreement for information regarding grace periods for rent payment and the amount of late fees.
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Purpose of Late Fees
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Late fees, also known as late charges, penalize a tenant who does not pay rent on time. The late fee also provides some financial compensation to the landlord as a way to make up for not receiving rent on time. If the landlord repeatedly accepts late rent without complaint, charge of a late fee or other legal action, the landlord may lose some of the legal rights associated with late rent. For example, a landlord who regularly accepts late rent from a tenant may encounter difficulties if the landlord subsequently wishes to evict the tenant. Furthermore, continuously accepting late rent may also affect the landlord's right to penalize the tenant with a late fee.
State Law on Late Fees
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According to the "Georgia Landlord Tenant Handbook" published by the Georgia Legal Services Program, state law does not impose a limit on the amount of a late fee charged by a landlord. Therefore, the landlord and tenant may freely negotiate a late fee, if any, before the tenant signs a new lease. If the tenant signs a lease that does not include a provision regarding late fees, the landlord cannot later charge one. A tenant or landlord with specific questions about rights given by Georgia's landlord-tenant or housing laws may benefit from a consultation with an attorney who practices law in the state.
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Lease Terms
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The lease is a contract between the landlord and the tenant. Accordingly, the court will look to the contract terms if the landlord files for eviction or the landlord and tenant have other legal disputes. The lease terms will determine the late fee charged by the landlord if the tenant does not pay the rent on time. The lease should also generally identify the due date for payment of rent each month, the permissible methods of payment -- such as check or cash -- and any grace period during which the landlord does not penalize late rent. The grace period, if any, determines the period of time that must pass before the landlord may charge a late fee.
Late Fees and Eviction Proceedings
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The amounts of the late fees charged by a landlord may affect the tenant during eviction proceedings started by the landlord. The tenant and landlord may try to negotiate a settlement that will allow the tenant to remain in the home without eviction proceedings in a Georgia court. The settlement may entail payment of past-due rent, late fees and any costs incurred if the landlord filed an eviction lawsuit. Low late fees may not significantly impact whether a tenant can afford to settle, but high late fees added to back rent may result in greater financial stress on the tenant.
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