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Q.Can my landlord charge a $500 late fee?
A.Probably not. If a rental agreement or lease contains a late fee provision, the landlord can charge a late fee if the tenant fails to remit payment of the rent on time. However, any late fee charged must be reasonably related to the actual costs incurred by the landlord as a consequence of the rent being late. In some communities, late fees are further limited by local rent control ordinances.
In addition to a late fee, the landlord may also charge the tenant a reasonable returned check fee if the rental agreement or lease contains such a provision. To be reasonable, the returned check fee must approximate the amount the bank charges the landlord. California Civil Code Section 1719(a)(1) allows a landlord to charge a service charge instead of the dishonored check fee described in this paragraph. The service charge can be up to $25 for the first check that is returned for insufficient funds, and up to $35 for each additional check.
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