Survey of State Laws Governing Fees Associated with Late Payment of Rent

Abstract

The Survey contains both a cumulative and detailed account of the laws of each state governing late fees and penalties associated with late payment of rent involving residential tenancies. States that impose late fee maximums vary greatly on the amount and form of the limitation—some limit the late fee to a certain percentage of the rental amount, a few states impose a dollar amount maximum, and several states impose both. Some states, rather than limiting the late fee to a certain amount, only require that the late fee be “reasonable.” Additionally, a handful of states mandate that late fees can only accrue after a certain grace period, and some states require that any late fee policy be in writing and within the lease agreement. Also, during the COVID-19 pandemic, some states instituted temporary moratoriums on late fees. The Survey begins with a detailed summary comparing each state's laws in this different areas related to late fees, followed by a table outlining the relevant laws of each of the 50 states.

Keywords: tenant, landlord, residential, tenancy, rent, late fee, late penalty, penalty, late charge, liquidated damages, eviction

JEL Classification: K00, K10, K11, K4, K41