Sometimes even the best tenants forget to pay rent when it’s due, which can mean extra hassle for the landlord — especially if they rely on the rental payment to cover property management expenses or a mortgage.

Including a grace period for rent gives tenants the time they need to make a payment, while a late rent fee can incentivize tenants to pay rent on time. With Zillow Rental Manager, you can collect rent, request a one-time payment like a late rent fee and monitor your tenant’s payment status, all in one place.

Note: Due to the COVID-19 pandemic, there may be federal, state and/or local laws that temporarily limit or prohibit landlords from charging late rent fees or evicting a tenant for nonpayment of rent. Be sure to stay current on any landlord-tenant laws for your state, city or town, and speak with a local attorney if you have any questions.

When is rent considered late?

If a tenant fails to pay the monthly rent in full by the end of the due date (usually the first of the month), rent is considered late. Some lease agreements may include a grace period for rent that specifies an amount of time after the due date where a tenant can pay rent without a penalty.

For example: If rent is due on June 1, but the lease states that the tenant has a three-day grace period, the tenant has until the end of the day on June 4 to pay rent. If rent is not received by then, the landlord can charge a late fee for rent.

Should landlords charge a late rent fee?

A typical late fee for rent is a reasonable percentage of the monthly rent, or a flat fee applied to the monthly rental rate for each month a tenant does not pay rent when due. If your local law permits charging tenants a late rent fee, you may consider adding a provision in your lease. Charging a late fee for rent can also provide you with additional financial support toward your property management expenses in the event that your tenant is late paying rent. Please consult with an attorney if you have any questions about what local law requires. 

Keep in mind that some renters may live paycheck-to-paycheck or face other challenges, and may need a few extra days to pay rent. According to the Zillow Group Consumer Housing Trends Report 2019, 66% of renters make at least one sacrifice to afford their rent. If you decide to charge a late rent fee, you may also want to offer tenants a grace period to pay rent.

How long is a grace period to pay rent?

A grace period for rent is typically three to five days. However, the minimum number of days allowed for a grace period may vary based on location, and not every state requires landlords to provide a grace period for rent.

Any late fees and grace periods for rent will be indicated in the lease agreement or lease addendum. In select states, you can easily customize a lease with Zillow Rental Manager and set a late fee amount and the number of days after the due date when rent is considered late.

When can a landlord charge a late fee?

Depending on local law and the terms specified in the lease agreement, a landlord can charge a late fee for rent each month that a tenant does not pay rent when due. Always check your state's landlord-tenant laws and speak with a local attorney before adding a late charge for rent.

How much can a landlord charge for late fees?

The maximum late fee allowed by law varies based on your state and local late fee laws. Most states will cap late fees at what is considered a reasonable amount.

For example: In Washington state, a late fee of $20 or 20% of the monthly rental amount (whichever is greater) is defined by law to be a reasonable late fee for rent.

How to notify a tenant when rent is late

In the event that your tenant's rent is past due, a friendly way to let them know is by sending a late rent notice. This gives the tenant a chance to make a payment before further action is needed and keeps a record of the communication in case the problem persists.

What if a tenant is consistently late paying rent?

If you notice that your tenant is frequently late paying rent, there are a few things you can try:

• Email or text rent reminders a few days before rent is due.
• Post flyers in common areas reminding tenants when rent is due.
• Use an online rent payment tool to track the status of your tenant's rent payments.
• Invite your tenants to set up automatic rent payments.

What if a tenant stops paying rent?

If your tenant stops paying rent entirely, review your lease and consider if there may be a valid reason. In some cases, a tenant may be withholding rent because you as the landlord have failed to fulfill a lease obligation.

While most late rent payments can be resolved with a simple rent reminder, you may consider notifying your tenant that rent is late by sending a late rent notice.

If you still don’t receive payment from a tenant after you've sent the notice, you may wish to consult with a local attorney. Depending on local law, you may request the tenant pay their overdue rent or vacate the premises, which may be the first step of an eviction process.