In what case can a tenant be charged late fees according to lease terms?

Study for the South Dakota Property Management Test. Study with quizzes and multiple choice questions, each question includes explanations. Ace your exam!

Charging a tenant late fees according to lease terms is valid when the specifics are outlined in the lease agreement. When it states that fees can be charged after the due date, it provides a clear guideline that both parties have agreed to. This ensures that the practice is fair and standardized, preventing arbitrary charges made by the landlord at their discretion.

The lease, as a legally binding document, must include provisions regarding late fees, including the time frame after which they apply and the amount that can be charged. This safeguards both the landlord's financial interests and the tenant's right to be informed of potential penalties.

Other options do not meet the standard conditions for imposing late fees. For instance, charging at the landlord's discretion is not permissible without specific terms in the lease, while payment within a grace period may not necessarily incur late fees unless explicitly mentioned. Orally agreeing on charges does not hold the same weight as formal written terms in the lease, which are essential for enforceability in legal or practical contexts.

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