Late fee

Example

Rent of $1,500 is due October 1, 2026, with a 5-day grace period that runs through October 6. Paid on October 7, it is late, and a 5% fee adds $75. In New York the cap is the lesser of $50 or 5% of the monthly rent, so the fee there would be $50, and New York law gives the 5-day grace period whatever the lease says.

In a lease it looks like…

If rent is not received by 11:59 p.m. on the fifth day after it is due, Tenant shall pay a late fee of 5% of the monthly rent. The late fee is charged once per rental month.

By state

More than a dozen states cap late fees or set a minimum grace period, such as Colorado (7 days’ grace, a fee of the greater of $50 or 5% of the past-due rent) and Maine (15 days’ grace, 4% of the monthly rent).

Late fee laws by state