A lot of landlords are wondering whether they are allowed to charge late fees in accordance with their lease agreements, as well as curious if they are allowed to shut off the utilities if there is non-payment of rent. We can help you understand what you are permitted to do during this time where there are emergency judicial orders pertaining to evictions, and what you should not do in order to avoid civil liability.
The lawyer’s answer to whether landlords are allowed to charge late fees as outlined in their lease agreements is it depends. According to a new order from Governor Cooper, landlords are able to charge late fees for any months of late or non-payment before May 30, 2020.
Any rent owed between May 30, 2020 and June 20, 2020 is unable to have any late fees attached per Governor Coopers order. However, any rent owed prior to May 30, 2020 and after June 20, 2020 may have late fees assessed if the rent was not paid on time.
Governor Cooper in his Order has also discussed the rights of landlords to shut off utilities if their tenant does not pay the bill on time. The Governor has ordered that no landlord is allowed to disconnect any utilities that have been unpaid due to the pandemic, this portion of the Order has been extended until July 29, 2020. The bills will continue to accrue and the balances are still due, but water, gas, and electric cannot be disconnected by a landlord during the time of COVID-19.
Landlords may be curious about whether pursuing someone for the late fees or accrual in utilities is necessary or worth a small claims action. When considering this, the attorneys at Hopler, Wilms, & Hanna, PLLC can counsel you on whether a small claims action is in your best interest financially. Contact us today!
