Imagine it’s the end of the month and almost all of your tenants have paid rent—except for one. While they may have valid reasons for falling behind, late payments can pose serious problems for landlords. As a result, you should consider charging late fees for rent.
Late rent fees serve dual purposes, encouraging future on-time rent payments by all tenants and covering the landlord’s costs. After all, a late payment can lead to extra administrative burden for landlords, not to mention the inconvenience of a disruption to cash flow.
Most states allow for late rent fees, but landlords must meet certain conditions to stay within their legal rights. In this article, we’re exploring when you can charge these fees, best practices, and more. Keep reading to learn everything you need to know about late fees.
What Is a Late Fee for Rent? (And When Is It Legal?)
A late fee for rent consists of a financial penalty that a tenant must face if they fail to pay rent when it’s due (and after any grace period). For landlords, late rent fees play an important role in rent collection, ensuring consequences for overdue payments.
If landlords want to charge late rent fees, they must disclose them in the lease. Most states either cap late fees at a certain amount or only allow for “reasonable” fees. And, of course, late fees must apply consistently to all tenants and cannot violate mandatory grace periods.
Having a written lease agreement is crucial for legally and accurately assessing late rent fees. Verbal agreements can leave landlords vulnerable to legal issues and potential nonpayment, as there’s no proof that the tenant agreed in the first place.
As a result, landlords should use state-specific lease agreements to specify the terms, amount, and other details of late rent fees. Without proper lease language and legal guardrails, landlords will be unable to enforce late-fee charges.
Typical Late Fee for Rent: How Much Should You Charge in 2026?
The amount that you can and should charge as a typical late fee for rent varies widely from place to place. The federal government imposes no limitations on late rent fees, leaving it to individual states, counties, and municipalities to impose their own restrictions.
According to 2025 data, the average late rent fee in the U.S. is around $85. However, the numbers can range from $50 to $150. Certain localities also place strict caps on late rent fees, either limiting them to a specific amount or a specific percentage of rent.
Instead of a specific cap, legislation in many other places simply states that landlords may charge only reasonable late-fee charges. We know what you’re thinking—“reasonable” sounds a little vague. But you can easily determine reasonableness by looking at a few factors.
First, you can research how much other landlords charge for late rent fees in your local rental market. You should also consider your actual administrative costs and the financial issues that late rent could cause. Above all, don’t charge excessive amounts, like 50% of rent.
Besides how much to charge, make sure to consider the type of late fee. You can settle on a flat fee, such as charging $100 after rent is 3 days overdue, or you can charge a percentage of the monthly rent. The industry standard is typically 5%.
Some states allow landlords to charge per-day late-fee charges, which accumulate each day rent is late. However, even in places where this practice is legal, late fees are often capped at a certain amount per day.
State Laws & Grace Periods in 2026: What Landlords Must Know
While industry standards and average late rent fees can give you a ballpark estimate, your state’s landlord-tenant laws always take precedence. There are three major factors to keep in mind when setting late rent fees:
Strict Cap States
First, check whether your rental property is in a state with a strict cap on the amount landlords can charge for late rent. Maine, Delaware, and many other states limit landlords to a specific fee amount or percentage of monthly rent.
In many of these places, late rent fees can’t exceed 4-5% of the rent amount. This protects tenants from punitive late fee charges while still allowing landlords to recover some of the financial losses incurred from late rent.
“Reasonable” Fee States
While laws capping late rent fees are becoming more common across the U.S., most of the country takes a broader legal approach. States like Massachusetts and Arkansas only require that landlords charge “reasonable” late fees, but don’t specify an exact amount.
However, this doesn’t mean you can charge any amount you feel like. To be considered reasonable, late fees must reflect the actual administrative costs caused by the late rent payment. Alternatively, these fees can be a reasonable estimate of the landlord’s damages.
In most cases, landlords won’t be able to enforce excessive late fees for rent, especially if the tenant decides to take their landlord to court rather than pay up. Courts often strike down particularly steep late fees, making it difficult, if not impossible, to collect.
Grace Periods and Other Mandates
Last but not least, read up on any of your state’s laws regarding mandatory grace periods. Many places, including New York, New Jersey, and North Carolina, require landlords to allow tenants 3 to 5 extra days to pay before charging a late fee on rent.
Even if you don’t live in a place with grace period laws, your state may require you to provide tenants with a written notice before assessing the late fee. Regardless of local legal statutes, landlords must make all late rent fee terms clear in the lease agreement.
Since landlord-tenant laws often change, you should read up on your state’s requirements at least once a year. Property management software makes it easy for landlords to stay up to date on state laws regarding typical late fees for rent.
Grace Period Limits by State
Rent is due on the date listed in the lease agreement. However, the date landlords can legally charge a late fee varies. The following states require a grace period before a late fee can be charged:
| State | Required Grace Period for Late Fees |
|---|---|
| Arizona | 5 days (mobile homes) None (other housing types) |
| Colorado | 7 days |
| Connecticut | 4 days (week-to-week lease agreements) 9 days (all other lease agreements) |
| Delaware | 5 days (or 8 days, where rent can’t be paid in person within the same county as the residence) |
| Maine | 15 days |
| Massachusetts | 30 days |
| Nevada | None (week-to-week lease agreements) 3 days (all other lease agreements) |
| New Jersey | 5 business days (certain senior tenants) None (other tenants) |
| New York | 5 days |
| North Carolina | 5 days |
| Oregon | 4 days |
| Tennessee | 5 days (if 6th day is a Sunday or holiday, due date is the next business day) |
| Texas | 2 days |
| Virginia | None (with written lease agreement) 5 days (if there is no written lease agreement) |
| Washington | 5 days |
| Washington D.C. | 5 days |
Some landlords also take day of the week into consideration when deciding how to count late payments.
A landlord doesn’t offer a grace period and rent is due on the first. The first of the month lands on a Sunday. The landlord may wait to charge a late fee until the end of the day on Monday as online payments or mailed payments may take longer to process as Sunday is not considered a business day.
Late Fee Laws by State
Some states limit the amount landlords can charge if tenants are late on their rent payments:
| State | Maximum Late Rent Fee |
|---|---|
| Alabama | No maximum, must be reasonable |
| Alaska | No maximum, must be reasonable |
| Arizona | $5/day (mobile homes) None (other housing types) |
| Arkansas | No maximum, must be reasonable |
| California | No maximum, must be reasonable |
| Colorado | $50 or 5% of the rent due (whichever is greater) |
| Connecticut | $5/day up to a maximum $50, OR 5% of the rental payment |
| Delaware | 5% of the monthly rent |
| Florida | $20, OR 20% of the rental payment, which ever is greater (can also add reasonable fee for costs related to collections) |
| Georgia | No maximum, must be reasonable |
| Hawaii | 8% of the rent due |
| Idaho | No maximum, must be reasonable |
| Illinois | No maximum, must be reasonable |
| Indiana | No maximum, must be reasonable |
| Iowa | $12/day up to $60 (rent below $700) $20/day up to $100 (rent over $700) |
| Kansas | No maximum, must be reasonable |
| Kentucky | No maximum, must be reasonable |
| Louisiana | No maximum, must be reasonable |
| Maine | 4% of the monthly rent |
| Maryland | 5% of the rent due (monthly rent payments) $3/week up to $12 (weekly rent payments) |
| Massachusetts | No maximum, must be reasonable |
| Michigan | No maximum, must be reasonable |
| Minnesota | 8% of the rent due |
| Mississippi | No maximum, must be reasonable |
| Missouri | No maximum, must be reasonable |
| Montana | No maximum, must be reasonable |
| Nebraska | No maximum, must be reasonable |
| Nevada | 5% of the monthly rent |
| New Hampshire | No maximum, must be reasonable |
| New Jersey | No maximum, must be reasonable |
| New Mexico | 10% of the monthly rent |
| New York | $50 or 5% of the monthly rent (whichever is greater) |
| North Carolina | $15 or 5% of a monthly payment $4 or 5% of a weekly payment (whichever is greater) |
| North Dakota | No maximum, must be reasonable |
| Ohio | No maximum, must be reasonable |
| Oklahoma | No maximum, must be reasonable |
| Oregon | Flat fee: must be reasonable Per-day fee: 6% of the flat fee 5-day period late fee: 5% of the monthly rent |
| Pennsylvania | No maximum, must be reasonable |
| Rhode Island | No maximum, must be reasonable |
| South Carolina | No maximum, must be reasonable |
| South Dakota | No maximum, must be reasonable |
| Tennessee | 10% of the rent due |
| Texas | 10% of monthly rent (buildings < 5 units) 12% of monthly rent (buildings with 5+ units) (or actual cost to landlord if it is higher) |
| Utah | $75 or 10% of the monthly rent |
| Vermont | Reasonable projected costs |
| Virginia | 10% of the monthly rent or 10% of the rent due (whichever is less) |
| Washington | No maximum, must be reasonable |
| Washington D.C. | 5% of the rent due |
| West Virginia | No maximum, must be reasonable |
| Wisconsin | No maximum, must be reasonable |
| Wyoming | No maximum, must be reasonable |
Local laws may also have their own stipulations. For example, California state law does not regulate late rent fees, but the West Hollywood Municipal Code limits the fee to 1% of the monthly rent.
How to Enforce a Late Fee for Rent With Minimal Conflict
Naturally, your tenant likely won’t be happy that you’re charging them a late fee for rent. While late rent fees are an unfortunately necessary part of doing business as a landlord, you can take certain steps to streamline the process and minimize the potential for conflict.
Focus on practical enforcement strategies.
Late rent fee enforcement begins at the very start of a lease, with the landlord including clear terms in the lease agreement. The tenant must agree to the rent due date, any grace periods, and the amount of the late fee before you can consider actually charging late fees.
By staying proactive during the tenancy, you can avoid late fees altogether. Before the rent is due, send your tenants regular payment reminders. If all of your renters pay on time, you won’t have to charge late fees.
You can also streamline rent collection and enforce late fees by collecting rent online with property management software. These programs allow you to send rent reminders automatically and charge late fees if necessary, preventing possible confrontations with your tenants.
Discuss fee waivers
Even the best tenants can sometimes make mistakes and pay rent late. If you’re dealing with a high-quality, trustworthy tenant, consider offering a one-time late-fee waiver as a courtesy. This can buy you valuable goodwill with your tenant in the long run.
If you do choose to waive late rent fees, document the process in writing to prevent confusion down the road. Additionally, you should clarify that the waiver is a one-time exception and won’t allow the tenant to skip paying late-fee charges in the future.
Address Fair Housing compliance
No matter where, landlords in the U.S. must apply all late rent fee policies uniformly. For example, you can’t waive late fees for specific tenants based on personal characteristics like race and religion, or charge higher fees to other tenants because of these factors.
If you enforce late-fee policies inconsistently, you may face accusations of discrimination, which could, in turn, lead to lawsuits and fines. Stay consistent with late-fee rules for all your tenants to remain compliant with federal Fair Housing laws.
Tracking Late Fees for Taxes and Recordkeeping
The IRS generally does not consider late rent fees as reimbursements. The only exception is when the late fee is directly tied to a specific bank charge, such as a fee for a bounced check.
To prevent confusion and potential issues with the IRS, you should properly categorize average late fees for rent during bookkeeping. Keep these charges separate from your base rent payments, and clearly label them in your accounting records.
Nowadays, you can use property management software to handle rental accounting and rent collection. These digital payment platforms can help you track rental income and create clear, organized financial records all year-round, which can be especially helpful in the event of an audit.
The Final Word
The idea of assessing late-fee charges may sound daunting to many landlords, but these charges are often an essential part of rent collection. They can prevent future late payment issues and cover your administrative costs, since overdue payments can cause numerous issues for landlords.
If you’re considering charging late-fee rent, property management software such as TurboTenant can help you get started. The platform provides rent collection and detailed accounting tools, allowing landlords to automatically charge late fees while remaining compliant with state and federal laws.
Sign up for a free TurboTenant account today to streamline all aspects of rental property management, including late rent fees.
Sources
- 1 Ariz. Rev. Stat. § 33-1414
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A landlord [of a mobile home] may charge a penalty fee of not to exceed five dollars per day from the due date of the rent for late payment of rent if the payment is not remitted by the sixth day from the due date.
Source Link - 2 Colo. Rev. Stat. § 38-12-105(1)(a)
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A landlord shall not take any of the following actions or direct any agent to take any of the following actions on the landlord’s behalf:
(a) Charge a tenant or home owner a late fee unless a rent payment is late by at least seven calendar days.
Source Link - 3 Conn. Gen. Stat. § 47a-15a(a)
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If rent is unpaid when due and the tenant fails to pay rent within nine days thereafter or, in the case of a one-week tenancy, within four days thereafter, the landlord may terminate the rental agreement in accordance with the provisions of sections 47a-23 to 47a-23b, inclusive. For purposes of this section, “grace period” means the nine-day or four-day time periods identified in this subsection, as applicable.
Source Link - 4 Del. Code tit. 25 § 5501(a)
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Where the rental agreement provides for a late charge payable to the landlord for rent not paid at the agreed time, such late charge shall not exceed 5 percent of the monthly rent. A late charge is considered as additional rent for the purposes of this Code. The late charge shall not be imposed within 5 days of the agreed time for payment of rent. The landlord shall, in the county in which the rental unit is located, maintain an office or other permanent place for receipt of payments, where rent may be timely paid. Failure to maintain such an office, or other permanent place of payment where rent may be timely paid, shall extend the agreed on time for payment of rent by 3 days beyond the due date.
Source Link - 5 Me. Stat. tit. 14 § 6028(1)
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A payment of rent is late if it is not made within 15 days from the time the payment is due.
Source Link - 6 Mass. Gen. Laws ch. 186 § 15B(c)
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No lease or other rental agreement shall impose any interest or penalty for failure to pay rent until thirty days after such rent shall have been due.
Source Link - 7 Nev. Rev. Stat. § 118A.210(4)(a)
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In a tenancy that is longer than week to week, no late fee may be charged or imposed until at least 3 calendar days after the date that rent is due.
Source Link - 8 N.J. Stat. § 2A:42-6.1
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A person to whom rent is due and payable on the first of the month upon a lease or other agreement shall allow a period of five business days grace in which the rent due shall be paid. No delinquency or other late charge shall be made which includes the grace period of five business days. As used in this section, “business day” means any day other than a Saturday, Sunday or State or federal holiday.
Source Link - 9 N.Y. Real Prop. Law § 235-E(d)
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If a lessor, or an agent of a lessor authorized to receive rent, fails to receive payment for rent within five days of the date specified in a lease agreement, such lessor or agent shall send the lessee, by certified mail, a written notice stating the failure to receive such rent payment. The failure of a lessor, or any agent of the lessor authorized to receive rent, to provide a lessee with a written notice of the non-payment of rent may be used as an affirmative defense by such lessee in an eviction proceeding based on the non-payment of rent. Notwithstanding the provisions of this subdivision, a lessor which is a cooperative housing corporation, other than a cooperative housing corporation subject to the provisions of article two, article four, article five or article eleven of the private housing finance law, may provide for a method of sending notice by mail other than by certified mail, as long as such method of sending notice is provided for in the proprietary lease or occupancy agreement, and the lessee is a dwelling unit owner or shareholder of such cooperative housing corporation.
Source Link - 10 N.C. Gen. Stat. § 42-46(a)
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In all residential rental agreements in which a definite time for the payment of the rent is fixed, the parties may agree to a late fee not inconsistent with the provisions of this subsection, to be chargeable only if any rental payment is five calendar days or more late, with the first day being the day after the rent was due. If the rent:
(1) Is due in monthly installments, a landlord may charge a late fee not to exceed fifteen dollars ($15.00) or five percent (5%) of the monthly rent, whichever is greater.
(2) Is due in weekly installments, a landlord may charge a late fee not to exceed four dollars ($4.00) or five percent (5%) of the weekly rent, whichever is greater.
(3) Repealed by Session Laws 2009-279, s. 4, effective October 1, 2009, and applicable to leases entered into on or after that date.
Source Link - 11 ORS § 90.260(1)
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A landlord may impose a late charge or fee, however designated, only if:
(a) The rent payment is not received by the fourth day of the weekly or monthly rental period for which rent is payable; and
(b) There exists a written rental agreement that specifies:
(A) The tenant’s obligation to pay a late charge on delinquent rent payments;
(B) The type and amount of the late charge, as described in subsection (2) of this section; and
(C) The date on which rent payments are due and the date or day on which late charges become due.
Source Link - 12 Tenn. Code § 66-28-201(d)
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There shall be a five-day grace period beginning the day the rent was due to the day a fee for the late payment of rent may be charged. The date the rent was due shall be included in the calculation of the five-day grace period. If the last day of the five-day grace period occurs on a Sunday or legal holiday, as defined in § 15-1-101, the landlord shall not impose any charge or fee for the late payment of rent; provided, that the rent is paid on the next business day. Any charge or fee, however described, which is charged by the landlord for the late payment of rent, shall not exceed ten percent (10%) of the amount of rent past due.
Source Link - 13 Tex. Prop. Code § 92.019(a)
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A landlord may not collect from a tenant a late fee for failing to pay any portion of the tenant’s rent unless:
(1) notice of the fee is included in a written lease;
(2) the fee is reasonable; and
(3) any portion of the tenant’s rent has remained unpaid two full days after the date the rent was originally due.
Source Link - 14 Va. Code § 55.1-1204(C)
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If a landlord does not offer a written rental agreement, the tenancy shall exist by operation of law, consisting of the following terms and conditions:
1. The provision of this chapter shall be applicable to the dwelling unit that is being rented;
2. The duration of the rental agreement shall be for 12 months and shall not be subject to automatic renewal, except in the event of a month-to-month lease as otherwise provided for under subsection D of § 55.1-1253;
3. Rent shall be paid in 12 equal periodic installments in an amount agreed upon by the landlord and the tenant and if no amount is agreed upon, the installments shall be at fair market rent;
4. Rent payments shall be due on the first day of each month during the tenancy and shall be considered late if not paid by the fifth of the month;
5. If the rent is paid by the tenant after the fifth day of any given month, the landlord shall be entitled to charge a late charge as provided in this chapter;
6. The landlord may collect a security deposit in an amount that does not exceed a total amount equal to two months of rent; and
7. The parties may enter into a written rental agreement at any time during the 12-month tenancy created by this subsection.
Source Link - 15 Wash. Rev. Code § 59.18.170(2)
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The landlord may not charge a late fee for rent that is paid within five days following its due date. If rent is more than five days past due, the landlord may charge late fees commencing from the first day after the due date until paid. Nothing in this subsection prohibits a landlord from serving a notice to pay or vacate at any time after the rent becomes due.
Source Link - 16 D.C. Code § 42-3505.31(b)
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A housing provider may only charge a late fee:
(1) If the written lease agreement between the housing provider and the tenant informs the tenant of the maximum amount of the late fee that may be charged pursuant to this section; and
(2) If the tenant has not paid the full amount of rent within 5 days, or any longer grace period that may be provided in the lease, after the day the rent payment is due.
Source Link - 17 Colo. Rev. Stat. § 38-12-105(1)(b)
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A landlord shall not… Charge a tenant or home owner a late fee in an amount that exceeds the greater of:
(I) Fifty dollars; or
(II) Five percent of the amount of the past due rent payment.
Source Link - 18 Conn. Gen. Stat. § 47a-15a(b)
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Source Link
If a rental agreement contains a valid written agreement to pay a late charge in accordance with subsection (a) of section 47a-4, a landlord may assess a tenant such a late charge on a rent payment made subsequent to the grace period in accordance with this section. Such late charge may not exceed the lesser of (1) five dollars per day, up to a maximum of fifty dollars, or (2) five per cent of the delinquent rent payment or, in the case of a rental agreement paid in whole or in part by a governmental or charitable entity, five per cent of the tenant’s share of the delinquent rent payment. The landlord may not assess more than one late charge upon a delinquent rent payment, regardless of how long the rent remains unpaid.
- 19 Del. Code tit. 25 § 5501
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Where the rental agreement provides for a late charge payable to the landlord for rent not paid at the agreed time, such late charge shall not exceed 5 percent of the monthly rent. A late charge is considered as additional rent for the purposes of this Code. The late charge shall not be imposed within 5 days of the agreed time for payment of rent. The landlord shall, in the county in which the rental unit is located, maintain an office or other permanent place for receipt of payments, where rent may be timely paid. Failure to maintain such an office, or other permanent place of payment where rent may be timely paid, shall extend the agreed on time for payment of rent by 3 days beyond the due date.
Source Link - 20 Fla. Stat. § 83.808(3)
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A facility or unit owner may charge a tenant a reasonable late fee for each period that he or she does not pay rent due under the rental agreement. The amount of the late fee and the conditions for imposing such fee must be stated in the rental agreement or in an addendum to such agreement. For purposes of this subsection, a late fee of $20, or 20 percent of the monthly rent, whichever is greater, is reasonable and does not constitute a penalty. In addition to late fees, a facility or unit owner may also charge a tenant a reasonable fee for any expenses incurred as a result of rent collection or lien enforcement.
- 21 Haw. Rev. Stat. § 521-21(f)
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Where the rental agreement provides for a late charge payable to the landlord for rent not paid when due, the late charge shall not exceed eight per cent of the amount of rent due.
Source Link - 22 Iowa Code § 562A.9
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For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month. For rental agreements in which the rent is greater than seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.
Source Link - 23 Me. Stat. tit. 14 § 6028(2)
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A landlord may not assess a penalty for the late payment of rent which exceeds 4% of the amount due for one month.
Source Link - 24 Md. Code, Real. Prop. § 8-208(d)(3)
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A landlord may not use a lease or form of lease containing any provision that: … (3) (i) Provides for a penalty for the late payment of rent in excess of 5% of the amount of rent due for the rental period for which the payment was delinquent; or (ii) In the case of leases under which the rent is paid in weekly rental installments, provides for a late penalty of more than $3 per week or a total of no more than $12 per month.
Source Link - 25 Minn. Stat. § 504B.177(a) & (b)
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(a) A landlord of a residential building may not charge a late fee if the rent is paid after the due date, unless the tenant and landlord have agreed in writing that a late fee may be imposed. The agreement must specify when the late fee will be imposed. In no case may the late fee exceed eight percent of the overdue rent payment. Any late fee charged or collected is not considered to be either interest or liquidated damages. For purposes of this paragraph, the “due date” does not include a date, earlier than the date contained in the written or oral lease by which, if the rent is paid, the tenant earns a discount.
(b) Notwithstanding paragraph (a), if a federal statute, regulation, or handbook permitting late fees for a tenancy subsidized under a federal program conflicts with paragraph (a), then the landlord may publish and implement a late payment fee schedule that complies with the federal statute, regulation, or handbook.
Source Link - 26 Nev. Rev. Stat. § 118A.210(4)
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A landlord may charge a reasonable late fee for the late payment of rent as set forth in the rental agreement, but:
(a) In a tenancy that is longer than week to week, no late fee may be charged or imposed until at least 3 calendar days after the date that rent is due;
(b) Such a late fee must not exceed 5 percent of the amount of the periodic rent; and
(c) The maximum amount of the late fee must not be increased based upon a late fee that was previously imposed.
Source Link - 27 N.M. Stat. § 47-8-15(D)
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If the rental agreement provides for the charging of a late fee, and if the resident does not pay rent in accordance with the rental agreement, the owner may charge the resident a late fee in an amount not to exceed ten percent of the total rent payment for each rental period that the resident is in default. To assess a late fee, the owner shall provide notice of the late fee charged no later than the last day of the next rental period immediately following the period in which the default occurred.
Source Link - 28 N.Y. Real Prop. Law § 238-A(2)
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No landlord, lessor, sub-lessor or grantor may demand any payment, fee, or charge for the late payment of rent unless the payment of rent has not been made within five days of the date it was due, and such payment, fee, or charge shall not exceed fifty dollars or five percent of the monthly rent, whichever is less; provided a cooperative housing corporation, other than a cooperative housing corporation subject to the provisions of article two, article four, article five or article eleven of the private housing finance law, shall be permitted to charge a tenant that is a dwelling unit owner or shareholder of such cooperative housing corporation a fee of up to eight percent of the monthly maintenance fee for the late payment of the monthly maintenance fee if the proprietary lease or occupancy agreement provides for such fee.
Source Link - 29 Tex. Prop. Code § 92.019(a-1) & (b)(a-1)
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For purposes of this section, a late fee is considered reasonable if:
(1) the late fee is not more than:
(A) 12 percent of the amount of rent for the rental period under the lease for a dwelling located in a structure that contains not more than four dwelling units; or
(B) 10 percent of the amount of rent for the rental period under the lease for a dwelling located in a structure that contains more than four dwelling units; or
(2) the late fee is more than the applicable amount under Subdivision (1), but not more than uncertain damages to the landlord related to the late payment of rent, including direct or indirect expenses, direct or indirect costs, or overhead associated with the collection of late payment.
(b) A late fee under this section may include an initial fee and a daily fee for each day any portion of the tenant’s rent continues to remain unpaid, and the combined fees are considered a single late fee for purposes of this section.
Source Link - 30 Utah Code § 57-22-4(5)
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An owner may not charge a renter:
(a) a late fee that exceeds the greater of:
(i) 10% of the rent agreed to in the rental agreement; or
(ii) $75; or
(b) a fee, fine, assessment, interest, or other cost:
(i) in an amount greater than the amount agreed to in the rental agreement; or
(ii) that is not included in the rental agreement, unless:
(A) the rental agreement is on a month-to-month basis; and
(B) the owner provides the renter a 15-day notice of the charge.
Source Link - 31 Highgate Associates, Ltd. v. Merryfield, 157 Vt. 313, 316 (Vt. 1991)
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[Three factors should be considered in determining whether a contract provision is a reasonable liquidated damages clause rather than an unlawful penalty:]
(1) because of the nature or subject matter of the agreement, damages arising from a breach would be difficult to calculate accurately;
(2) the sum fixed as liquidated damages must reflect a reasonable estimate of likely damages; and
(3) the provision must be intended solely to compensate the nonbreaching party and not as a penalty for breach or as an incentive to perform.
Source Link - 32 Va. Code § 55.1-1204
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A landlord shall not charge a tenant for late payment of rent unless such charge is provided for in the written rental agreement. No such late charge shall exceed the lesser of 10 percent of the periodic rent or 10 percent of the remaining balance due and owed by the tenant.
Source Link - 33 D.C. Code § 42-3505.31(a)
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Pursuant to subsection (b) of this section, a housing provider may charge a late fee of no more than 5% of the full amount of rent due by a tenant.
Source Link
