Can the landlord charge a fee for late rent payments?
Yes, the landlord can charge a late fee. However, for a late fee to be legal, it must approximate the actual damage suffered by the landlord by receiving the rent late. Late fees must compensate; they cannot penalize. “Actual damages” might include lost interest on the rent, the cost of sending the tenant a letter requesting payment of rent or making a phone call, and any penalty the landlord was charged for making a late mortgage payment. In some instances, judges have upheld late fees up to $15-20/month.
