Sec. 1. 10 MRSA §1372, sub-§2-A is enacted to read:

2-A.__Late fee.__"Late fee" means any fee or charge assessed for an occupant's failure to pay rent when due.__"Late fee" does not include interest on a debt, reasonable expenses incurred in the collection of unpaid rent or costs associated with the enforcement of any other remedy provided by statute or contract.

Sec. 2. 10 MRSA §1376 is enacted to read:

§1376.__Late fees

1.__Imposition of late fee.__An operator may impose a reasonable late fee in accordance with this section for each service period that an occupant does not pay rent when due, as long as the due date for the rental payment is not earlier than the day before the first day of the service period to which the rental payment applies.__A late fee may not be imposed if the occupant makes a rental payment in full by the 3rd day after the due date.

2.__Conditions in writing.__An operator may not impose a late fee unless the amount of that fee and the conditions for imposing that fee are stated in a written rental agreement or an addendum to that agreement.

3.__Permissible late fees.__A late fee of $20 for each late rental payment or 20% of the amount of each rental payment, whichever is greater, is reasonable and does not constitute a penalty.__The rental agreement may provide for a late fee in a greater amount if that amount is reasonable.__The operator has the burden of proof that the late fee in the greater amount is reasonable.

4.__Recovery of reasonable expenses.__An operator may recover from the occupant any reasonable expense incurred in rent collection or lien enforcement in addition to the late fee permitted by subsection 1.

SUMMARY

This bill, which is modeled on Ohio and Missouri law, prohibits operators of self-service storage facilities from imposing excessive rental fees. The bill requires that the amount and the conditions for imposing the late fee be in writing. The bill establishes as a reasonable late fee $20 for each late rental payment or 20% of the amount of each late rental payment, whichever is greater. The bill authorizes the operator and the occupant to contract for a higher late fee as long as the