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Better late than never: examining late-fee rules state-by-state.

Twenty-two states have laws governing rules for late fees charged to residents for rent. One state, Oklahoma, outright prohibits the 1 assessment of late fees. Disclaimer: The information below is not intended as legal advice. This chart contains only information pertaining to states that have enacted statutory law addressing late fees. For advice on charging late fees, please contact a licensed attorney in your state. Information updated as of October 2011.

More ideas for ancillary income and resident fees can be found at http://bit.ly/loTOpQ and http://bit.ly/IHOIEE, both on NAA Community (NAA login required).
State Statute Description

Ala. [section] Landlord may deliver written notice to
 35-9A-421 terminate the lease specifying the amount
 of rent and any late fees owed to remedy
 the breach, agreement will terminate not
 less than seven days after receipt of the
 notice.

Ariz. A.R.S. Before the filing of a special detainer
 [section] action, the rental agreement shall be
 33-1368 (B) reinstated if the tenant tenders all
 past-due and unpaid periodic rent and a
 reasonable late fee set forth in a written
 rental agreement.

Conn. Conn. Gen. A rental agreement shall not provide that
 Stat. the tenant agrees to pay a late charge
 [section] prior to the expiration of the nine-day
 47a-4(a)(8); grace period after rent is due, or to pay
 47a-15a rent in a reduced amount if such rent is
 paid prior to the expiration of such grace
 period.

Del. 5 Del. C. Where provided for in the rental agreement
 [section] a late charge shall not exceed 5 percent of
 5501(d) the monthly rent or be imposed within five
 days of the payment due date. It is
 considered as additional rent for the
 purposes of the Del. Code. The landlord
 shall maintain an office in the county
 where the rental unit is located at which
 tenants can pay rent. Tenant will have an
 additional three days if landlord does not
 have a local office.

Ga. O.C.G.A. Late fees are allowed; all contracts for
 [section] rent shall bear interest from the time rent
 44-7-16 is due.

Iowa Iowa Code In the case of a residential lease, a late
 [section] payment fee shall not exceed $10 a day or
 535.2 (7) $40 per month.

Kan. K.S.A. Rent is defined as all payments made to the
 [section] landlord under the rental agreement; late
 58-2543 (j) fees must be written into lease.

Maine 14 M.R.S. A landlord may assess a late payment if
 [section] payment is not made within 15 days from the
 6028 due date; it may not exceed 4 percent of
 the amount due for one month. A landlord
 must also give the tenant written notice at
 the time they enter into the rental
 agreement that a penalty may be charged for
 late rent.

Md. Md. Real Late fee may not exceed 5 percent of the
 Property Code amount of rent due for the rental period
 Ann. [section] for which the payment was delinquent. In
 8-208(d)(3) 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.

Mass. ALM GL.ch. No lease or other rental agreement shall
 186, [section] impose any interest or penalty for failure
 15B(l)(c) to pay rent until 30 days after such rent
 shall have been due.

Minn. Minn. Stat. A landlord may not charge a late fee if
 [section] rent is paid after the due date unless
 504B.177 agreed in writing. The agreement must
 specify when the late fee will be imposed
 and it may not exceed 8 percent of the
 overdue rent payment. Any late fee charged
 or collected is not considered to be either
 interest or liquidated damages.

Mont. Mont. Code Late charges may be deducted from a
 Anno., security deposit.
 [section]
 70-25-201(4)

Nev. Nev. Rev. Written rental agreement must contain
 Stat. Ann. provisions relating to charges resulting
 [section] from late or partial payment of rent. The
 118A. absence of a written agreement raises a
 200(3)(g), disputable presumption and no charges are
 (4)(c) paid by the tenant.

N.J. N.J. Stat. When rent is due on the first of the month
 [section] upon a lease or other agreement a period of
 2A42-6.1,2A five business days grace in which the rent
 42-6.3 due shall be paid. No delinquency or other
 late charge shall be made within this
 period. This provision is only applicable
 to senior citizens receiving Social
 Security or pension benefits.

N.M. N.M. Stat. If the rental agreement provides for a late
 Ann. [section] fee, and if rent is not paid in accordance
 47-8-15 (D) with the agreement, the owner may charge
 the fee in an amount not to exceed 10
 percent of the total rent payment for each
 rental period 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.

N.C. . N.C. Gen. Parties may agree to a late fee not
 Stat. inconsistent with the provisions of this
 [section] subsection, chargeable only if any payment
 42-46 is five days or more late. If the rent is
 monthly the landlord may charge a late fee
 not to exceed $15 or 5 percent of the
 monthly rent, whichever is greater. Only
 one late fee per payment is allowed; it may
 not be deducted from a subsequent payment.

Okla. Sun Ridge Preset late fees are invalid and
 Investors, unenforceable.
 Ltd.
V.
 Parker, 956 P.

 2d 876 (1998)
Ore. ORS [section] A landlord may impose a late fee if the
 90.260 payment is not received by the fourth day
 of the rental period for which rent is
 payable. The rental agreement must disclose
 the late-fee policy. Landlord may: 1)
 charge a "reasonable" (defined as the
 customary late fee charged by landlords
 "for that rental market") fee; 2) charge a
 daily late fee no greater than 6 percent of
 the reasonable late fee as defined above;
 3) charge a late fee of 5 percent of the
 rent charged every five days that rent is

 late beginning on the fifth of the month.
S.C. S.C. Code Ann. Late fees are included within the
 [section] definition of rent

 27-40-210
Tenn. Tenn. Code There is a five-day grace period between
 Ann. [section] the due date and the day a fee for late
 66-28-201 (d) payment may be charged. If the last day of
 the five-day grace period occurs on a
 weekend or legal holiday, the landlord
 shall not impose any charge if the rent is
 paid the next business day. Any charge or
 fee by the landlord for the late payment of
 rent shall not exceed 10 percent of the

 amount of rent past due.
Texas Tex. Prop. Landlord may not charge a fee unless:
 Code [section] notice of the fee is included in a written
 92.019 lease; the fee is a reasonable estimate of
 uncertain damages to the landlord that are
 incapable of precise calculation; and the
 rent has remained unpaid one full day after
 the date the rent was originally due. A
 late fee under this section may include an
 initial fee and a daily fee for each day

 the rent continues to remain unpaid.
Va. Va. Code Ann. Provisions related to charges for late
 [section] payment of rent may be included in a lease
 55-248.7 agreement.
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Date:Jun 1, 2012
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