Late Fees

Protections against Unfair Late Fees

What are late fees?

• Landlords can charge late fees to a tenant when rent is paid late or if a rent check bounces, ONLY IF the late fee policy and amounts are outlined in the lease/rental agreement
• Late fees can not be punitive or seen as a penalty for paying rent late. Instead, the fee should reflect a reasonable estimate of the amount that the late payment will cost the landlord per Orozco v. Casimiro 121 Cal.App.4th Supp. 7 (2004).
  • Landlords can charge tenants $25 for a bounced check.
  • Often lease or rental agreement will include specific information about late fees (i.e. percentage of the rent, etc.). If the late fee seems to high, a tenant may ask the landlord to justify the amount or lower the cost.
  • If you believe you have been charged a late fee unfairly, fill out this Unfair Late Fee Sample Letter and turn it in to your landlord as soon as possible.

Can I be evicted if I am not able to pay my late fees?

Under no circumstances may a landlord evict the tenant because of late fees. However, unpaid late fees may be taken out of the security deposit.  

NOTE: Landlords must serve a tenant who is late on rent a 3-day eviction notice to “pay or quit” before they can file an eviction suit against the tenant in the courts.