One day Grace period and Late Fees in Texas?

Question

When collecting rent from a tenant in Texas, I understand that Texas requires by law for there to be a mandatory one day grace period. The law states that you must give your tenant one full day after the date rent is due (rent is due on the 1st of the month in this example) before applying late charges.

Does that mean that the late charges can be applied if the rent is not received by 12:01 am on the 3rd day? In other words, my question is:  EXACTLY WHAT TIME ON WHICH DAY (2nd day, 3rd day, 4th day of the month) can / should late charges be applied?

Thank you in advance!

Account Closed · Answer

I found this article:

http://www.texastenant.org/late_fees.html

It looks like the late charges must be spelled out in the contract, that the fees must actually reflect what the landlord would actually lose out-of-pocket, and that the grace period is up on the 3rd.

I'd assume that would be 12:01 am on day 3.

You might like the Nolo Press landlord book for TX.  I used their CA one and loved it.  Easy to understand.  They also have great contracts you can edit.

http://store.nolo.com/products/every-texas-landlor...

Cindi Smith · Answer

Sorry, that should have said 5 pm on Friday the 3rd & Monday the 6th & if your office...I'm too new to be able to edit my posts because you can only edit them within 10 minutes of writing them & it takes longer than 10 minutes for them to show up since they have to be verified by moderator when you're new.

Cindi Smith · Answer

Actually, it's a 2 day grace period. That's why the standard lease that most complexes use says rent is due by the 1st and late after the 3rd. Generally, when it's late depends on how it's paid. If they pay you electronically then if they log in at 12:01 am on the 4th to pay it it's late, if they pay it at 11:59 pm on the 3rd it's not.  If it's an actual check or money order that they bring to the leasing office then it's late on the next business day if it is not in the office when you open at your normally scheduled time. For example, f your office closed at 5 pm on Friday the 3rd and didn't open again until 9 am Monday the 8th if when you open at 9 am Monday the payment is there then it is considered on time, even if they slid it under the door at 8:55 am on Monday the 8th.

David Chao · Answer

Thank you Fred I appreciate your response!

Sue, I'll certainly look into Nolo Press for TX, thank you for the advice!

Fred Heller · Answer

From my experience the most common grace period for paying rent without a late fee is the 5th day of the month. So if the tenant pays at 12:01AM on the 6th, they incur a late fee. You can also charge a daily fee starting on the 7th until the rent is paid. But that should be included in the lease.