Bill Text: TX HB1821 | 2017-2018 | 85th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to a late fee for failing to pay rent under a residential lease.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-05-09 - Placed on General State Calendar [HB1821 Detail]

Download: Texas-2017-HB1821-Introduced.html
  85R8204 BEE-F
 
  By: Clardy H.B. No. 1821
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a late fee for failing to pay rent under a residential
  lease.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 92.019, Property Code, is amended by
  amending Subsections (a) and (e) and adding Subsection (a-1) to
  read as follows:
         (a)  A late fee under this section may include an initial fee
  and a daily fee for each day the rent continues to remain unpaid.
         (a-1)  A landlord may not charge a tenant a late fee for
  failing to pay rent unless:
               (1)  notice of the fee is included in a written lease;
               (2)  the initial fee does not exceed eight percent of
  one month's rent and each subsequent daily fee does not exceed two
  percent of one month's [is a reasonable estimate of uncertain
  damages to the landlord that are incapable of precise calculation
  and result from late payment of] rent; and
               (3)  the rent has remained unpaid one full day after the
  date the rent was originally due.
         (e)  This section relates only to a fee, charge, or other sum
  of money required to be paid under the lease if rent is not paid as
  provided by Subsection (a-1)(3) [(a)(3)], and does not affect the
  landlord's right to terminate the lease or take other action
  permitted by the lease or other law.  Payment of the fee, charge, or
  other sum of money by a tenant does not waive the right or remedies
  provided by this section.
         SECTION 2.  Section 92.019(b), Property Code, is repealed.
         SECTION 3.  Section 92.019, Property Code, as amended by
  this Act, applies only to a lease entered into or renewed on or
  after the effective date of this Act. A lease entered into or
  renewed before the effective date of this Act is governed by the law
  as it existed immediately before the effective date of this Act, and
  that law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect January 1, 2018.
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