Late fees

[Dawn Anastasi]

I was listening to WPR (Wisconsin Public Radio) today and they had on a guest who was answering questions and one landlord called in and said that his tenant hadn't paid late fees and can he deduct them from the security deposit.

The guest speaker said NO. I could not believe that, because I have it in my lease specifically that the security deposit coverages "damages and accrued fees" etc. So I would think the answer should be YES.

I was surprised, as WPR (and NPR) generally give out good information. Am I missing something? (I have only had to take out late fees ONCE out of a security deposit, and the tenant didn't question it. I was only up to the limit per the state statutes.)

[Rob K.]

I have this clause in my lease:

"Money received by landlord from tenant shall be applied to tenant’s account in the following manner: first, to outstanding late fees and dishonored check fees; second, to outstanding late fees chargeable to tenant; third, to outstanding legal fees, or court costs, or both; fourth, to outstanding utility bills that are the tenant’s responsibility; and lastly, to rent."

If a tenant pays the last month, but not the late fees, they actually paid the late fees and part of the rent. The remaining rent that's owed could be deducted from the security deposit.