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In Texas, a landlord can charge a late fee if:

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Question & Answer

Review the question and all answer choices

A

The lease allows it

Correct Answer
B

Always, regardless of lease terms

A landlord cannot charge a late fee 'always, regardless of lease terms' because Texas Property Code Section 92.019 explicitly requires the fee to be authorized in the written lease agreement; imposing a fee without contractual authority would constitute an improper charge that the tenant could legally refuse to pay and that could expose the landlord to liability for wrongful collection.

C

Only for commercial properties

Texas Property Code Section 92.019 applies specifically to residential properties and does not restrict late fee authority to commercial properties; in fact, residential tenants have more statutory protections regarding late fees than commercial tenants, making this answer the opposite of the legal reality.

D

Never

Late fees are absolutely permitted in Texas when properly authorized by the lease agreement; the Texas Property Code Section 92.019 explicitly contemplates and regulates late fees, confirming their legality while setting parameters for their reasonableness and enforceability.

Why is this correct?

Under Texas Property Code Section 92.019, a landlord may only charge a late fee if the lease agreement expressly authorizes it, meaning the fee must be stated in writing in the lease contract that the tenant signed; a verbal agreement or a landlord's unilateral policy is insufficient to make a late fee enforceable. This requirement ensures that tenants have clear notice of the financial consequences of late payment before they enter the lease, which is a fundamental principle of contract fairness and informed consent.

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