Late fee is far above what the law allows
High risk“If rent is not received by the 1st, Tenant shall pay a late fee of 25% of monthly rent, plus $20 per day thereafter.”
- Why it matters
- A 25% fee plus daily charges looks like a penalty rather than a reasonable estimate of the landlord's actual costs, which many courts refuse to enforce.
- Your state's rule
- In this example state (Texas), a late fee must be reasonable and can only be charged after rent is at least 2 full days late (Tex. Prop. Code § 92.019).
- What to ask for
- Ask to replace it with a flat fee of no more than 5–10% of monthly rent, starting on day 3.