Landlord charges $75 late fee + $10/day. Legal?
Late fee structure in my lease seems aggressive. Is there a limit?
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Late fee structure in my lease seems aggressive. Is there a limit?
✓ Verified answer from a licensed attorney — shown first
Late fees are governed by your state's contract law and (in many states) statute. Most states require late fees to be 'reasonable estimates of damages' and not punitive. A flat $75 might be defensible; a $10/day late fee on top is often struck down as a penalty. CA case law has invalidated late-fee structures that exceed 6-10% of monthly rent as unreasonable. If the landlord is suing for accumulated late fees, this becomes a defense; if you're just being charged them and paying, you'd have to file a small-claims case to challenge. Worth a consult on your specific lease language.
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