Is it legal to charge 73% per day late charge on past due rent?

02/01/2007 - Landlord Tenant - State: SC #1284

Full Question:

Is it legal to charge 73% per day late charge on past due rent? I was ill and this is what I was charged from day one. Also, how long is a lease good for if it does not state the length?

Answer:

Every person other than the owner of real estate, excepting a domestic servant and farm laborer, using or occupying real estate without an agreement, either oral or in writing, shall be deemed a "tenant at will" Unless the rental agreement fixes a definite term, the tenancy is week to week in case of a roomer who pays weekly rent and in all other cases month to month. Title 27, Chap. 40, §27-40-310

"Rent" means the consideration payable for use of the premises including late charges whether payable in lump sum or periodic payments, excluding security deposits or other charges. A lease may specify that a certain rate of interest is to be charged on rent which is due and unpaid. However, a statute may limit what rate of interest may be charged, even though the lease may call for a higher amount. We are unable to find a South Carolina statute that limits the rate of interest on late rental payments. However, the maximum interest rate on a judgment in South Carolina is 14%.

Please see the information at the following links: Please see the forms at the following links:

02/01/2007 - Category: Landlord Tenant - State: SC #1284

See more Questions in the Landlord Tenant Category