By: Hancock S.B. No. 1414
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to fees regarding a residential tenant's failure to timely
  pay rent.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 92.019, Property Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsection (a-1)
  to read as follows:
         (a)  A landlord may not collect from [charge] a tenant a late
  fee for failing to pay any portion of the tenant's rent unless:
               (1)  notice of the fee is included in a written lease;
               (2)  the fee 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)  any portion of the tenant's rent has remained
  unpaid two [one] full days [day] after the date the rent was
  originally due.
         (a-1)  For purposes of this section, a late fee is considered
  reasonable if:
               (1)  the late fee is not more than:
                     (A)  12 percent of the amount of rent for the
  rental period under the lease for a dwelling located in a structure
  that contains not more than four dwelling units; or
                     (B)  10 percent of the amount of rent for the
  rental period under the lease for a dwelling located in a structure
  that contains more than four dwelling units; or
               (2)  the late fee is more than the applicable amount
  under Subdivision (1), but not more than uncertain damages to the
  landlord related to the late payment of rent, including direct or
  indirect expenses, direct or indirect costs, or overhead associated
  with the collection of late payment.
         (b)  A late fee under this section may include an initial fee
  and a daily fee for each day any portion of the tenant's rent
  continues to remain unpaid, and the combined fees are considered a
  single late fee for purposes of this section.
         (c)  A landlord who violates this section is liable to the
  tenant for an amount equal to the sum of $100, three times the
  amount of the late fee collected [charged] in violation of this
  section, and the tenant's reasonable attorney's fees.
         SECTION 2.  Subchapter A, Chapter 92, Property Code, is
  amended by adding Section 92.0191 to read as follows:
         Sec. 92.0191.  STATEMENT OF LATE FEES.  A tenant may request
  that the landlord provide to the tenant a written statement of
  whether the tenant owes a late fee to the landlord and, if so, the
  amount of the late fee. The landlord may provide the statement to
  the tenant by any established means regularly used for written
  communication between the landlord and the tenant.  A landlord's
  failure to respond does not affect the tenant's liability for any
  late fee owed to the landlord.
         SECTION 3.  Section 92.019, Property Code, as amended by
  this Act, applies only to a late fee under a lease entered into or
  renewed on or after the effective date of this Act. A late fee under
  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 September 1, 2019.