Can a landlord impose a late fee if the monthly rent is not paid by the first of the month?
A landlord may impose a late fee on installments of rent from the time they become due. This is true whether the lease is written or oral. Most standard lease agreements contain a provision that states when the rent is due and the fee that will be imposed if the payment is not made on time. A provision such as this is enforceable provided it is not disproportionate to the amount of harm caused to the landlord by the late receipt of the rent. For example, courts have not allowed a late fee of $50 to be imposed on a late monthly rent of $405, because the late fee was considered disproportionate and characterized as a penalty. The law does not allow a landlord to impose a penalty for late rent. The imposition of a late fee in rental units which are subject to regulation under the various rent control or rent regulation statutes may be subject to specific limitations.
