LEGAL UPDATE
i.
ii.
iii.
iv.
v.
Be certain entries are
accurate (this goes without
saying);
Do not charge the resident for
any amount or fee that is not
expressly
based
on
a
provision in the lease or an
addendum to the lease, for
instance, do not charge a
“termination fee” or “lack of
60 day notice fee” in a move
out statement unless you have
a specific agreement to
charge the fee – normally, the
only fee available for a tenant
who skips is the Reletting
Fee and accelerated rent
(with the accelerated rent
being reduced by rent paid by
a replacement tenant);
Do not use the words
“penalty” or “forfeiture” in
your accounting or move out
statement (penalties and
forfeitures are generally not
allowed under Texas law);
Prior to filing an eviction, be
certain that your ledger is
absolutely correct regarding
the amount of rent due at the
time of filing;
Do not rely solely on your
accounting
program
to
accurately complete a Move
Out Statement; every Move
Out Statement should be
reviewed for accuracy prior
to it being delivered to your
former tenant.
Conclusion:
Until there the Texas Legislature
makes changes in the Texas Finance Code to
more closely mirror the Federal Fair Debt
Collection Practices Act, you will
increasingly become a target of tenants and
tenant lawyers for mistakes in evictions and
tenant accounts; you also risk waiving rent
owed by the tenant when you are not
diligent in your eviction practice. As one
tenant advocate from Austin recently stated,
"Late fee litigation and debt collection
litigation are the trends that landlords in
Texas should expect.” As with any new
trend, expect the internet to light up with
information by tenants and for tenants
regarding landlord accounting practices. For
any questions you have regarding avoidance
of mistakes in evictions and accounting, you
should contact your counsel; and don’t
waive rents due because of improper
eviction practices or be the next target of
a wrongful debt collection letter or
lawsuit.
R. David Fritsche is an attorney with The Law Offices of R. David Fritsche, General Counsel to
the San Antonio Apartment Association, and engages in the practice of landlord/tenant law and
civil litigation. He can be reached at (210) 227-2726, facsimile (210) 227-5550.
Page 5
30
July/August 2018 | www.saaaonline.org