Section 2

Tenancy Agreements

Sub-Section 2.4

Late Payment Fees


Legislation


s. 69(4) , The Residential Tenancies Act;
s. 20(1), 20(2), Residential Tenancies Regulation

Definitions

House rule: a written rule a landlord may have for tenants in addition to the obligations in a tenancy agreement. For example: A tenant may not have a pet in the rental unit.

Tenancy agreement:a contract between a landlord and a tenant that sets out the basic rules for living in a rental unit. It can be written, oral or implied.

Policy

A tenant is responsible to pay the landlord the full rent on the day the rent is due. If the rent is not paid on time, the landlord may charge the tenant a late payment fee.

A landlord must tell a tenant in writing that they will charge a late payment fee if the tenant doesn’t pay rent on time. A landlord can include this information:

  • on a tenancy agreement; or
  • in the house rules.

Once a tenant knows about the fee, a landlord is entitled to charge it.

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The rate for a late payment fee is set by regulation. A landlord cannot charge more than what has been set by regulation. A landlord may charge a late payment fee of:

  • up to $10.00 for the day the rent was due; and
  • up to $2.00 for each day after the due date that the rent is late in any consecutive number of rental payment periods, to a maximum of $100.00.

When a landlord charges a late payment fee, the tenant must pay the daily rate:

  • up to and including the day they actually pay the rent in full; or
  • the fee reaches the $100.00 maximum.

Example #1: The tenant is supposed to pay their rent on November 1. The tenant doesn’t pay the rent until November 8. The landlord is entitled to a late payment fee of $24.00 ($10.00 for November 1 and $2.00 per day for November 2 to November 8).

Example #2: The tenant is supposed to pay their rent on November 1. The tenant pays part of their November rent on November 1, but doesn’t pay the balance of November’s rent until December 8. The tenant also pays their December rent on December 8. The landlord is entitled to a late payment fee of $84.00 ($10.00 for November 1 and $2.00 per day for November 2 to December 8).

Example #3: The tenant is supposed to pay their rent on the first of each month. The tenant stays in the rental unit, but doesn’t pay their rent in November, December or January. The landlord is entitled to $100.00 for a late payment fee ($10.00 for November 1 and $2.00 per day starting November 2 to the maximum of $100.00).

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When a landlord claims a late payment fee on an Application for an Order of Possession or a Claim for Compensation, the Branch calculates the fee up to and including the date of the hearing, to a maximum of $100.00.

Example #1: The tenant owes November rent and doesn’t move on the landlord’s notice. The landlord applies for an Order of Possession and claims rent and a late payment fee. On November 25, the Branch holds a hearing on the landlord’s application. The Branch awards the landlord a late payment fee of $60.00 ($10.00 for November 1 and $2.00 for each day up to and including November 25).

Example #2: The tenant owes November and December rent. The landlord applies for an Order of Possession and claims rent and a late payment fee. On January 8, the Branch holds a hearing on the landlord’s application. The Branch awards the landlord a late payment fee of $100.00 ($10.00 for November 1 and $2.00 for each day up to the maximum of $100.00).

Example #3: The tenant moves out at the end of November owing November rent. The landlord files a claim against the tenant for November’s rent and a late payment fee. On January 20, the Branch holds a hearing on the landlord’s claim. The Branch awards $100.00 for a late payment fee ($10.00 for November 1 and $2.00 per day starting November 2 to January 20 to the maximum of $100.00.

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A landlord may also claim accumulated late payment fees at the end of a tenancy if the claim is made in a timely manner. For example: At the start of a tenancy, a landlord tells a tenant in writing that they charge a late payment fee. The rent is due on the first of each month. During the one year agreement, the tenant pays their rent late four times – November 5, December 4, January 8 and February 3. At the end of the tenancy, the landlord may claim a total late payment fee of $72.00 ($18.00 for November, $16.00 for December, $24.00 for January and $14.00 for February).

The landlord may:

  • deduct the accumulated late payment fee from the security deposit at the end of the tenancy with notice to the tenant; or
  • include the accumulated late payment fee on a claim for compensation they file with the Branch.

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A landlord can’t terminate a tenancy for non-payment of late payment fees only.


Procedure

Overview

This policy is included as information for landlords, tenants and officers. If tenants and landlords can’t agree on the amount of late payment fees, they can ask the Branch for help.

Steps ▼

1.The officer encourages the tenant and the landlord to share information, and to discuss the problem, to try to come to an agreement.

2.When a landlord or tenant asks the Branch for help with a late payment fees problem, the appropriate officer follows the procedures for:

Forms & Form Letters

X-Referencing

None

Policy Developed

September, 1992*

Last Revision

May, 2015

Other Resources

None

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