Almost half of U.S. states limit the amount landlords can charge if tenants are late on their rent payments. For example, in New York the limit is the greater of $50 or 5% of the rent payment. However, most states, like Pennsylvania, let the landlord set a reasonable late fee.
| 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 late rental payment |
| Delaware | 5% of the monthly rent |
| Florida | $20 or 20% of the rent due (whichever is greater) |
| 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 have stricter requirements than the statewide standard. For example, California state law does not regulate late rent fees, but West Hollywood Municipal Code limits the fee to 1% of the monthly rent.
What Is a Reasonable Late Fee?
Most statutory law and caselaw points to 5%-10% of the monthly rent payment as a reasonable amount to charge for late rent. It’s also reasonable for a landlord to set a fee based on actual costs incurred by a late rent payment, in a similar way as the fee for a late mortgage payment.
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)(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 - 3 Conn. Gen. Stat. § 47a-15a(b)
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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.
- 4 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 - 5 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.
- 6 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 - 7 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 - 8 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 - 9 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:
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(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 - 10 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 - 11 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 - 12 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 - 13 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 - 14 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 - 15 ORS § 90.260
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(1) 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.
(2) The amount of any late charge may not exceed:
(a) A reasonable flat amount, charged once per rental period. “Reasonable amount” means the customary amount charged by landlords for that rental market;
(b) A reasonable amount, charged on a per-day basis, beginning on the fifth day of the rental period for which rent is delinquent. This daily charge may accrue every day thereafter until the rent, not including any late charge, is paid in full, through that rental period only. The per-day charge may not exceed six percent of the amount described in paragraph (a) of this subsection; or
(c) Five percent of the periodic rent payment amount, charged once for each succeeding five-day period, or portion thereof, for which the rent payment is delinquent, beginning on the fifth day of that rental period and continuing and accumulating until that rent payment, not including any late charge, is paid in full, through that rental period only.
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(5) A landlord may charge simple interest on an unpaid late charge at the rate allowed for judgments pursuant to ORS 82.010(2) and accruing from the date the late charge is imposed.
Source Link - 16 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 - 17 Tex. Prop. Code § 92.019(a-1) & (b)
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(a-1) 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 - 18 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 - 19 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 - 20 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 - 21 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.
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