How Much Can I Charge for Late Rent in California?

Are Late Fees Legal in California?

Yes, landlords can charge late fees in California, but they must be reasonable and clearly stated in the rental agreement. California law doesn’t set a strict dollar amount, but it does prohibit excessive or punitive fees.

The key is that any late fee must reflect a reasonable estimate of the cost to the landlord caused by the delay in payment of rent.

What’s Considered “Reasonable” for Late Fees?

While there's no fixed percentage under state law, most courts in California consider a late fee of 5% or less of the monthly rent to be reasonable. For example:

• If rent is due on the 1st and is $2,000/month
• A late fee of $100 or less is generally seen as acceptable

Charging more than that — especially without justification — could make the fee unenforceable if challenged in court.

When Can I Charge a Late Fee?

You can only charge a late fee if the lease or rental agreement includes late fees as part of the terms. The lease should also specify:

• When rent is due
• Whether there’s a grace period (usually 3 to 5 days)
• The amount of rent that triggers the fee
• The exact amount or formula for calculating the late fee

Without this written clause, the tenant could dispute the fee — and likely win.

Is a Grace Period Required in California?

While California state law doesn't mandate a day grace period, many landlords provide a 3- to 5-day grace period out of fairness or custom. If you offer one, it must be clearly defined in the rental agreement.

What About Bounced Checks or Partial Payments?

If a tenant pays late or with a bounced check, you may be able to charge additional fees — again, if outlined in your rental terms.

• Returned check fees in California are generally capped at $25 for the first and $35 for subsequent offenses.
• These must also be disclosed in your lease to be enforceable late fees.

Can Late Fees Impact the Eviction Process?

Yes — but tread carefully. If a tenant fails to pay the full amount of rent (including late fees) within the timeline on a notice to pay rent, you may begin the eviction process.

However, late fees cannot be the primary reason for eviction unless clearly enforceable and documented. Most landlords proceed with eviction based on unpaid monthly rent, and then recover late fees separately if needed.

Also, as of 2024, California law requires a 15-day notice to pay or quit for nonpayment — not the traditional 3-day notice used in years past.

Final Tips for California Property Owners

• Include late fees in all rental agreements — never assume you can add them later
• Ensure all charges, grace periods, and due dates are clearly explained
• Use professional property management services if you're unsure about compliance
• Stay updated on local ordinances, which may add restrictions beyond state guidelines



When used properly, late fees support a strong landlord-tenant relationship by setting fair expectations and keeping your rental property running smoothly.