Court Ruling on Unconscionable Rent-to-Own Late Fees Could Set Precedent for Southwestern Pennsylvania Landlords 

A recent Fayette County Common Pleas Court ruling declared that the $5 per day late fee charged by landlords Joseph John and Joseph John II in their rent-to-own agreements was unconscionable and fraudulent. This decision not only impacts their 50+ properties across Fayette and Greene Counties but could also serve as an important legal precedent for residential landlord-tenant disputes in Allegheny County and throughout southwestern Pennsylvania.

The Ruling: Daily Late Fees Deemed Illegal

The court found that the Johns’ policies, including a $25 initial late fee plus $5 per day thereafter, were excessive and unlawful. Additionally, requiring tenants to pay rent in cash and in person at the landlord’s home was deemed a coercive and unfair practice. The lawsuit, brought by the Pennsylvania Attorney General’s Office, also accused the landlords of letting homes fall into disrepair while continuing to collect payments.

How This Ruling Could Be Applied by Local Magistrates and Judges

While this case was heard in Fayette County, its findings could influence local magistrates, arbitration panels, and judges across Allegheny County and southwestern Pennsylvania in standard landlord-tenant disputes pursuant to Pennsylvania’s Landlord-Tenant Act. 

Tenants facing similar conditions now have a stronger legal argument to challenge late fees, one-sides lease terms, and rent-to-own abuses. They may also report violations to the Attorney General’s Office. 

For local magistrates, this ruling could shift how eviction and landlord-tenant disputes are handled, reinforcing tenant protections and discouraging landlords from exploiting legal gray areas.

Conclusion

The Fayette County court’s finding that a $5 per day late fee is unconscionable sets a critical legal precedent for renters and landlords alike. As this case unfolds, it could reshape how late fees, rent-to-own contracts, and unfair housing practices are handled in southwestern Pennsylvania’s local courts and arbitration panels.