Quick question for the group - PPL Electric in Pennsylvania hit my client's 45-unit complex with $340 in late fees last month. Property manager wants to pass these fees through to tenants proportionally. I can't find anything in Pennsylvania law that specifically prohibits this, but it feels wrong to charge tenants for the property owner's payment timing issues. Anyone know the legal stance on passing through utility late fees in master-metered buildings?
PPL master meter late fees - can they charge tenants?
Sylvia, that's a slippery slope. Here in South Carolina, landlord-tenant law generally prohibits passing through penalties that result from the landlord's actions or inactions. The late fee is PPL's response to the property owner's late payment, not anything the tenants did. I'd advise against it unless there's specific lease language that clearly allows all utility-related charges to be passed through.
I agree with Marcus. In North Dakota, we've seen property managers get into trouble trying to pass through late fees, reconnection charges, and deposit penalties to tenants. The key issue is that tenants have no control over the master meter payment timing. If the property manager wants to avoid late fees, they need better cash flow management, not tenant subsidies for their poor payment practices.