Charges for paying rent or a bill after the due date.
Late fees must usually be reasonable and, in many states, are capped or must reflect the actual cost of the late payment. A late fee that functions as a penalty — far above real costs — may be unenforceable. Check your state’s cap and any grace period in the lease.
Some states cap residential late fees at 5% of rent; a flat $200 fee on $1,000 rent may be challengeable.
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