What is a rent late fee?

A late fee should be written into the lease: the due date, any grace period, and how the fee is calculated, either as a flat amount or a percentage of the rent. Without a lease clause, a landlord generally can't charge one.

Many states and cities limit late fees. Rules can cap the amount, require a minimum grace period, or require the fee to be a reasonable estimate of the landlord's actual costs. Check the rules where the property is before you set yours.

Applying the fee the same way to every tenant, every month, matters as much as the amount. Inconsistent late fees invite disputes.