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Limiting Late Fees Charged to Tenants in Rent-Controlled Buildings

Official:Amending Chapter 9-800 of The Philadelphia Code, entitled “Landlord and Tenant,” to place limits on late fees that may be charged to residential tenants, all under certain terms and conditions.

Sponsor: Councilmember Young

Introduced: February 13, 2025

: Committee on Law and Government

housing housing policy

Plain-Language Summary

This bill proposes to limit late fees that landlords can charge to residential tenants in Philadelphia.

What This Bill Does

AI-written. Every figure is checked against the bill text.

Limits late fees that landlords can charge to residential tenants in Philadelphia to charges that are consistent with the City Rent Withholding Act.
Prohibits landlords from charging or accepting late fees, interest, or similar charges for non-payment of rent if the tenant has withheld payment to cover costs incurred to render the premises habitable, as long as the withholding is consistent with the City Rent Withholding Act or determined by the Commission or a court to be based on a breach of the implied warranty of habitability.
Requires landlords to provide tenants with proper notice of the defect or condition giving rise to the alleged breach of the implied warranty of habitability before charging late fees.
Takes effect immediately upon becoming law.

Both Sides

AI-written arguments. Every figure is checked against the bill text.

The case for

This bill would provide critical protection to Philadelphia's low-income and vulnerable tenants, who often face exorbitant late fees and penalties that can exacerbate their housing insecurity. By capping late fees and prohibiting landlords from charging interest on rent withheld due to habitability issues, the bill would prevent tenants from being financially exploited and forced to choose between paying rent or paying for essential repairs. As a result, tenants would be able to hold landlords accountable for maintaining safe and habitable living conditions, and would be able to pay their rent without incurring unfair and burdensome fees.

The case against

This bill unfairly burdens landlords with financial losses and administrative burdens, while also setting a dubious precedent for tenant-landlord disputes. By immediately taking effect, it disrupts existing rental agreements and forces landlords to adjust their practices retroactively, which may lead to costly disputes and potential lawsuits.

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