Am I obligated to tell my landlord that she's forgotten to charge me for rent?

[tvdirector1]

I'm in Los Angeles, California. My wife and I live in a large apartment complex that's run by a management company. Recently, we signed up to have our rent payments automatically deducted from our checking account. It's a new service the management company is offering. May was the first month the auto-debit started. It went through in May with no problems, but the money was not deducted in June and as of early morning July 5th, our rent hasn't been deducted for July either.

I realize that I'm obligated to pay the money, but since I signed up for the auto-debit, it would seem that the impetus is on them to make sure that the charge goes through. Obviously someone has made a mistake, but I'm wondering if I'm in any way obligated to point out that mistake.

We haven't spent the money, obviously. It's sitting in our checking account ready to go should they suddenly discover their error.

Also, we're moving out on August 15th. Once we move, I realize we're probably still on the hook for that money, but again, I'm wondering if I'm obligated to point out their error to them. And assuming I'm not under an obligation like that, is there any sort of statute of limitations as to how long they can come to me to collect any back rent that hasn't been paid?

Thanks.

 

[PghREA]

I think you know the answer to your question.

If you lived in the unit, you owe the rent. They WILL discover the error sooner or later.

 

[xylene]

You need to inform them of this error before it gets out of control.

Write them a letter and send it CRR:

Inform them that you have reviewed your financial statements and have noticed a serious error on their part.

Inform them that you have contacted your bank and have taken them off auto-debt authorization.

Enclose a CHECK for the rent due.

That you understand that due to their error no late fees will be owed.

 

[Zigner]

That you understand that due to their error no late fees will be owed.

This is not true, legally speaking. It would be good form for them to not charge the late fees, however, it is NOT the LL's responsibility to "charge" for rent. Rather, it is the tenant's responsibility to pay rent.

EDIT:
Unless, of course, the automatic deduction agreement says that you are not responsible for late fees if payments are not deducted on time.

 

[xylene]

it is NOT the LL's responsibility to "charge" for rent.

It is not a responsibility, however they can CHOOSE to change for rent: ie automatic direct deductions from a checking account

Rather, it is the tenant's responsibility to pay rent.

Indeed it remains their responsibility to make these payments.

EDIT:
Unless, of course, the automatic deduction agreement says that you are not responsible for late fees if payments are not deducted on time.

I would accept this arguement only if it were a question of failing to sign up for the direct wirthdrawl was on time, or the delay was due to the OP switching banks, or a clerical error (repeated each month) by the OP, or lack of funds...

The OP and the Landlord entered into a contract where the OP granted the right for the Landlord to make direct withdrawls to satisfy their monthly rent obligation. I think it would be more that bad form for the landlord to expect late fees becuase they didn't live up to their obligation to make their withdrawls in a timely manner.

Hardly bad form- it is almost the entire essence of the agreement. We will direct withdrawl the rent so you don't have to worry about cutting a check. NOT- We can (but are not required to) make direct withdrawls for rent so you might not have to worry about cutting a check. And of course we will not inform you, so you'll need to wait at least a few weeks and get your bank statement (look for the item that isn't on it), at which point we will charge you a late fee....

Would it be bad form for the OP to drain his checking account, have the Landlord make their withdrawl and come up NSF, and then the OP show up at the Landlord's door and say "Oh Sorry, Didn't you read my mind that I wanted to pay cash? Here is the cash rent, MINUS the NSF fee my bank charged."

 

[Zigner]

It is not a responsibility, however they can CHOOSE to change for rent: ie automatic direct deductions from a checking account



Indeed it remains their responsibility to make these payments.



I would accept this arguement only if it were a question of failing to sign up for the direct wirthdrawl was on time, or the delay was due to the OP switching banks, or a clerical error (repeated each month) by the OP, or lack of funds...

The OP and the Landlord entered into a contract where the OP granted the right for the Landlord to make direct withdrawls to satisfy their monthly rent obligation. I think it would be more that bad form for the landlord to expect late fees becuase they didn't live up to their obligation to make their withdrawls in a timely manner.

Hardly bad form- it is almost the entire essence of the agreement. We will direct withdrawl the rent so you don't have to worry about cutting a check. NOT- We can (but are not required to) make direct withdrawls for rent so you might not have to worry about cutting a check. And of course we will not inform you, so you'll need to wait at least a few weeks and get your bank statement (look for the item that isn't on it), at which point we will charge you a late fee....

Would it be bad form for the OP to drain his checking account, have the Landlord make their withdrawl and come up NSF, and then the OP show up at the Landlord's door and say "Oh Sorry, Didn't you read my mind that I wanted to pay cash? Here is the cash rent, MINUS the NSF fee my bank charged."

I'm sorry, I must have missed where OP posted the entire text of his agreement

 

[xylene]

I'm sorry, I must have missed where OP posted the entire text of his agreement

Is it possible the OP owes late fees. Maybe. I doubt it, but then again neither of us has read their exact agreement. But my point was not based on what the agreement said.

It was based on what you said. Especially this:

Unless, of course, the automatic deduction agreement says that you are not responsible for late fees if payments are not deducted on time.

I don't need to have read the agreement to NOT buy that analysis for a second.

A contract doesn't need to have a specific clause for there to be a right to damages based upon one parties non-performance.

 

[Zigner]

A contract doesn't need to have a specific clause for there to be a right to damages based upon one parties non-performance.

I think that the management company would have a strong argument that >30 days is plenty of time for OP to realize that his rent hasn't been paid. But, this is all a hypothetical argument without knowing what the agreement for automatic withdrawls actually says. Also, is the agreement actually with the management company (as OP implies), or is it with a third party service?

 

[tvdirector1]

More Info!

Here's some more info about my situation.

When I signed up for the auto debit, it was a very simple form. It simply authorized the company to debit my checking account. There was no language that discussed what would happen if they forgot to debit the account. Late fees were not discussed on the form.

Indeed, like another poster said, the whole thing is set up so that one doesn't have to worry about late fees. In my mind, once they have the authority to take money directly from my bank account at a pre-determined time, they lose the right to collect late fees. Am I crazy?

I realize that legally I do, in fact, still owe the money. I should probably just tell them and get it overwith.

 

[xylene]

I think that the management company would have a strong argument that >30 days is plenty of time for OP to realize that his rent hasn't been paid.

Exactly why the OP needs to confront this situation immediately. (While the delay in billing is still a double edged sword, not a razor blade about to slice his you-know-whats off with huge late fees.)

But, this is all a hypothetical argument without knowing what the agreement for automatic withdrawls actually says. Also, is the agreement actually with the management company (as OP implies), or is it with a third party service?

True. Hypothetically speaking, I don't think the OP owes late fees just yet, barring something that is in the agreement. I do not think that their needs to be a specific provision in the contract for the OP to not owe damages. The issue of third parties is an additional complexity, but is not discussed by the OP.

 

[xylene]

I realize that legally I do, in fact, still owe the money. I should probably just tell them and get it overwith.

Tell them immediately, and tell us how it goes.