Some landlords charge rent payment ‘convenience fees’. Is it legal?
If you’ve been a renter, chances are you’re familiar with the dreaded “convenience fee.”
For some renters, there are loopholes. For others, it’s completely unavoidable — and yes, being forced to pay one is completely legal in North Carolina.
The fee can range from $5 to more than $60 per rent payment. One tenant in Concord took to Nextdoor this month to express their grievance.
“Convenience fee to pay rent? I’m new to this community and quickly realizing this was a big mistake,” the woman wrote. “Is anyone familiar with having to pay an additional $68 convenience fee for paying your rent through the online portal?”
Nearby residents quickly began chiming in, many of them being familiar with the issue.
Some suggested the practice couldn’t possibly be legal, especially considering the steep price of the fee. However, charging a convenience fee for credit card payments is legal in North Carolina, especially if it is noted in a tenant’s lease agreement.
What is a rent payment convenience fee?
Convenience fees are charges attached to rent when tenants pay their dues through an online portal via credit card. Typically, the fees are initially charged by third-party software hosts to landlords, who eventually pass the fees on to tenants that pay their rent.
In that regard, a convenience fee is different from a “surcharge,” which is a charge imposed by your landlord simply for using a credit card — although there aren’t statutes in North Carolina that prohibit those either, according to the National Conference of State Legislatures.
When you’re paying a convenience fee with your rent, you’re effectively paying for the software that supports your online portal and/or transaction fees imposed onto your landlord by credit card companies.
In some cases, tenants can avoid convenience fees by using fee-free options for payment, including eCheck or ACH (automatic) drafting, so long as they’re offered by the landlord.
Any other conditions on form of payment or additional charges should be mentioned in the tenants lease or rental agreement.
What is a rent late fee?
Unlike convenience fees, other fees that may be attached to a tenant’s rent that are more strictly regulated by the state include late fees.
North Carolina law allows landlords to charge up to $15 or 5% of the rent, whichever is greater, in fees for rent that is late. Furthermore, a late fee can only be charged one time for each late rental payment.
This story was originally published October 6, 2022 at 4:37 PM with the headline "Some landlords charge rent payment ‘convenience fees’. Is it legal? ."
