How Much are Late Fees for Rent? – Average Late Fee For Rent

Are you feeling disturbed with tenants who never pay rent on time? Then you need to know the LATE FEE FOR RENT and the period after the deadline. As a homeowner, you can send a late rent notice to the tenant and request them to pay the due amount as soon as possible. The tenant needs to pay the overdue rent amount to the landlord. This notice is the first step of the eviction rule. So, if you have any tenant like this then, you should know about this process.

When is rent considered late?

Rent is considered late if rent is due after a five-day grace period. So, if the rent due on the first day of the month, you can charge your late fee on the sixth day.

What is a late rent notice?

A late rent notice represents a property manager’s official letter informing the tenant that rent is past due. Although it is an informal courteous reminder notice, the tenant should take this letter seriously and pay immediately.

A late rent notice is a letter written by the property manager informing them of the past due. The late rent notice requests payment immediately. While you should take this letter seriously, it’s more informal than an eviction notice. It’s a courteous reminder that rent is past due.

A late rent notice is also known as these names:

  • Demand notice for nonpayment of the rent amount.
  • Demand for the past due rent amount.
  • Notice to pay the rent.
  • Demand for payment of the rent amount.

What are late rent fees?

Late rent fees represent the additional fixed price that tenant needs to pay if he doesn’t pay the entire amount of rent by the due date, after the grace period. Usually, the grace period in the US is 5 days.

Many tenants fail to pay rent by the due date. At this time, landlords can impose a LATE FEE FOR RENT. If the rent is due in the first month, the homeowner will impose the late fee on the second month. But there is a grace period or the period after the deadline. It is written on a legal document or lease. Local or state government laws will also mandate it.

You should know that the grace period in late rent fees is widespread. The grace period offers the tenant extra time to pay the rent. So, within three to five days, considered a grace period, the tenant needs to pay the late fee rent.

How Much are Late Fees for Rent?

The average late fee for rent is 5% of your rent price. However, late fee rent is defined in the contract and usually is from 4% to 10% of rent price.

It would help if you were fair and firm as a landlord. So, you will have to be very compassionate while setting the late rent fee for your tenants. You should know that the standard late fee amount is 5% or less than that. So, if the rent amount is $1000, you need to set the late rent fee to $50 or less. Above all, you need to check if the state law has any kinds of limitations or not. After deciding the amount, you need to mention the amount, due date, and the grace period on the legal paper or lease document. It would help if you did not feel that you are overcharging and taking advantage of their situation.

Can you be evicted for paying rent late?

Yes, if you as a tenant pay late fees rent very often to the property manager (landlord), you can be evicted. Usually, this is explained in the contract in the section “Eviction for Repeated Late Payment.” However, if tenant late rent payment is due to COVID-19, many states have eviction moratoriums.

In this case, you need to explain to them that their rent is due, and they need to pay the rent amount before the due date. You need to explain that you will have to pay the rent to cover the whole property cost. Homeowners need the payment to pay the electricity bills, mortgage bills, and all.

By enforcing the late rent fee, you can ensure that your tenants will pay the rent on time and before the due date. You can use an online rent payment tool or platform. The whole thing will be easy and simple. The payment process will be transparent as well to the tenants. As a landlord, you need to be on the same page with the tenants to get the rent amount. The smart people will collect rent online. It is a smart move. You should follow this process if you have any types of disturbing or troublesome tenants. Above all, you need to screen your tenants before they begin the landlord-tenants relationship with them.

Are late rent fees legal?

The late rent fee is a legal and authorized issue. But as a homeowner, you need to ensure that this late rent fee is written on the legal document or lease paper. The late rent fees follow the local laws, and you will have to change the authorized and legal amount as late rent fees. So, it is necessary to write on the legal paper while a landlord charges the late fee to a tenant.


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If you are a landlord and face a problem with troublesome tenants who never pay rent on time, you need to know that charging the late rent fee is not illegal and unauthorized. Above all, a homeowner needs to pay the electricity bills and other bills on time. So, while your tenants cannot meet the deadlines, you will eventually fail to pay these bills on time. So, the whole scenario will collapse. But if you charge a late rent fee then, you should give them a grace period. It is necessary and a wise decision. It would help if you were firm and kind with your tenants. So, you can get the rent amount on time before the due date. Many factors can lead to late rent payment. So, it would help if you were a little considerate in this case.


While you enforce the late rent fee, you will have to mention the cost and date while you charge it. It would help if you obeyed your state law in this matter. Your tenants may have hard feelings towards you due to this. But you need to handle the whole situation with a calm and composed mindset. It would be best if you handled this matter reasonably. Long-run tenants can give your benefits. So you need to maintain a good relationship between tenants and landlord.


You will have to add the whole matter on the legal paper or lease document. Your tenants should read this carefully before signing it. You will have to ensure this fact. Your tenants will follow the rule and pay the rent on time. Otherwise, they know that they need to pay the late rent fee within a grace period.


You can charge the late fee when the grace period or deadline is over. You can also impose the eviction notice. You should create your lease on a legally binding document, and everything is written on the paper abiding by the law.



Daniel Smith

Daniel Smith

Daniel Smith is an experienced economist and financial analyst from Utah. He has been in finance for nearly two decades, having worked as a senior analyst for Wells Fargo Bank for 19 years. After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management. At, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification. Read more on Daniel Smith's biography page. Contact Daniel:

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