The most important source of information about a residential tenant’s rights and a landlord’s responsibilities is the written lease agreement. Some landlords prefer oral agreements, but it is more common for them to require the tenant's signature on a written lease—and a written lease protects the tenant more than an oral agreement. Be sure to read the lease carefully before you sign it.
A residential landlord’s ability to charge late fees generally depends on the specific language in the written lease agreement; the state’s landlord-tenant laws that may limit the amount of late fees the landlord can charge and the circumstances in which they can be charged; and the state's contract law.
Contract law in most states recognizes an implied duty of good faith and fair dealing between parties to a contract, and a residential landlord who charges late fees because the tenant is an hour late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing—unless, for example, the lease agreement specifies an hour (12:00 p.m.) of the day by which rent is due and states that time is of the essence.
In Texas, the written lease agreement is indeed a crucial document outlining the rights and responsibilities of both the residential tenant and the landlord. Texas law favors written leases for clarity and enforceability. Tenants are encouraged to read and understand the lease before signing, as it is legally binding once signed. Regarding late fees, Texas Property Code (Sec. 92.019) stipulates that landlords can charge late fees only if the fee structure is outlined in the lease agreement and the fees are reasonable. The law also requires a grace period of at least one day before late fees can be charged. Additionally, the implied duty of good faith and fair dealing is recognized in Texas contract law, which means that landlords must exercise fairness in enforcing lease terms, including the imposition of late fees. Charging a late fee for rent that is only an hour late could be seen as a breach of this duty unless the lease explicitly states that rent is due at a specific time and emphasizes that timing is critical ('time is of the essence').
