Consequences of Paying Rent Late in Texas

Paying rent late in Texas can cost you money--and possibly your tenancy.

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Your lease or rental agreement and Texas state law are the key places to look for answers to this question. Basically, if you pay rent late, you may be hit with a late fee and possibly face the termination of your tenancy. To avoid problems, know when your rent is due and pay it on time.

Read the Rent and Termination Clauses in Your Lease or Rental Agreement

Look for a clause called Payment of Rent, or something similar. Basically, you want to find out the following:

  • the date that rent is due—this is usually the first of the month (and this is the date the landlord receives your rent payment, not the date that the envelope with your mailed rent check is postmarked)
  • what happens if the first of the month falls on a weekend or holiday (your lease may give you until the next business day to pay rent)
  • whether or not you have a grace period before rent is considered late, and
  • whether or not your landlord will charge you a late fee (and how much) if you don’t pay rent on time. Under Texas law, any late fee provision must be included in a written lease and cannot be imposed until you are one full day late paying rent after the date rent is due. Also, a late is valid only if it is a reasonable estimate of uncertain damages to the landlord that are incapable of precise calculation. Your landlord may charge you an initial late rent fee and a daily fee for each day you are late with the rent. (See Tex. Prop. Code Ann. § 92.019.)

You’ll also want to check what your lease says regarding the landlord’s right to terminate your entire tenancy if you pay rent late. Unfortunately, many lease and rental agreements don’t spell this out, but simply include a general clause called something like Grounds for Termination of Tenancy, that states that if you fail to comply with a term of your agreement the landlord may terminate your tenancy under rules and procedures required by law. Read on to find out what these rules and procedures are in Texas.

Understand Tenant Rights Under Texas Laws on Termination for Nonpayment of Rent

If you have not paid the rent on time, under state law in Texas (Tex. Prop. Code Ann. § 24.005),  your landlord must give you at three days’ notice to move (unless your lease specifies a shorter or longer amount of time).

More Information on Tenant Rent Rights in Texas

For details on other Texas rent-related laws, such as the amount of notice a landlord must give to raise the rent, see the Nolo article on Texas rent rules. And if you simply can’t pay rent on time, consider other options, such as trying to negotiate a partial rent payment. See the Nolo article What to Do and Not to Do if You Can’t Pay Rent on Time for advice.

Finally, keep in mind that you if you constantly pay rent late, and you have a month-to-month rental agreement, your landlord may decide to simply terminate your tenancy with the required amount of notice (one month in Texas), rather than deal with the hassle of regularly sending you late rent notices. And even if your landlord does not terminate your tenancy, don’t expect a great reference from your current landlord when you move on to a new apartment.

 

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