Late fee for rent
A landlord can charge a late fee only if the lease says so, and the fee must be reasonable. Many states also set a grace period or a cap: New York allows no more than $50 or 5% of the rent after 5 days, and Massachusetts allows no late fee until rent is 30 days late. Where there's no statute, about 5% of monthly rent is a common choice.
State examples
| State | Rule | Source |
|---|---|---|
| New York | Only after 5 days; the lesser of $50 or 5% of monthly rent | Real Prop. Law § 238-a |
| Massachusetts | No late fee until rent is 30 days late | M.G.L. c. 186 § 15B(1)(c) |
| Maine | Only after 15 days; up to 4% of monthly rent | 14 M.R.S. § 6028 |
| Oregon | Only after rent is unpaid by the end of the 4th day of the rental period | ORS 90.260 |
| Texas | Only after rent is unpaid two full days after the due date; fee presumed reasonable up to 12% of rent (buildings of 4 units or fewer) or 10% (larger) | Tex. Prop. Code § 92.019 |
| California | No fixed cap; the fee must be a reasonable estimate of the landlord's actual cost of late payment | Civil Code § 1671 and case law |
Checked October 31, 2026. Cities and rent-controlled or subsidized housing can add stricter rules. Not legal advice.
Put it in the lease
- The due date and the grace period.
- The fee as a flat amount or a percentage, within your state's limit.
- Whether it's charged once or daily (daily fees are often capped or treated as unreasonable).
- The fee for a returned payment, if any.
Charge it consistently
- The day after the grace period, add the late fee to the tenant ledger as a separate charge.
- Send a late rent notice with the rent due, the fee and a pay-by date.
- When the tenant pays, apply the payment and give a rent receipt.
Waiving fees for some tenants and not others invites fair housing complaints. If you waive one, note why in the ledger.
Late fees added for you. RentLedger HQ Pro posts rent for all tenants at once and adds the late fee only for tenants past their grace period, the amounts you set per tenant. $7 a month.
Open the tenant ledgerQuestions
Is a 5-day grace period required?
Only where state or local law says so, such as New York. Elsewhere it's a lease choice, and many landlords give one anyway.
Can I deduct unpaid late fees from the security deposit?
In many states, yes, if the fees were valid under the lease and law. List them on the itemized deposit return letter.
Can I charge a late fee on a late fee?
Avoid it. Charge the fee on late rent only; fees on fees are likely to be seen as unreasonable.