How much can a landlord charge for late rent?

In California, a landlord is allowed to charge a late fee for rent payments that have not been received by the due date stated in the lease or rental agreement. The fee is limited to a maximum of 5 percent of the total amount of rent that is due for the month. For instance, if the total monthly rent is $1,500, then a landlord cannot charge more than $75 as a late fee. However, there are certain additional stipulations regarding late rent payments that landlords must adhere to. A landlord must give the tenant a written three-day notice prior to charging a late fee. The notice should include the amount of rent that is due and the date it is due. Additionally, the landlord must specify in the notice that the tenant has three days to pay the rent before a fee may be charged. If a tenant has not paid the rent after three days, then the landlord may charge a fee. In addition, the written notice must state that the tenant has the right to pay the rent in full within the three-day period to avoid being charged the late fee. If the tenant does pay the full amount of rent within the three-day period, then the landlord cannot charge a late fee. Finally, it is important to note that late fees are not considered a part of the rent, so if a tenant pays the late fee, it does not constitute payment of the monthly rent. As such, a tenant is still obligated to pay the full rent amount for the month.

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