Late Fees – What is the maximum amount or percentage an owner can charge as a late fee when a resident is late in paying rent?

There is no state law that specifically addresses late fees, and courts vary in their rulings on late fees. Some courts have allowed a $5 or $10 late fee while others have allowed up to $30. The rule of thumb appears to be that an owner’s late fee must be reasonable; the owner must be able to show that he or she derived the late fee through a reasonable endeavor to estimate fair compensation for the owner’s time and expense.