Additional Resources: Late Fees

Texas law says that how and when late fees apply must be included in your lease. Additionally, those late fees must be “reasonable.” What counts as “reasonable” depends on the size of the building:

• For buildings with 4 or fewer units:

  • Charging up to 12% of monthly rent in late fees is “reasonable.”

  • For example, if rent is $1000 a month, then a late fee of $120 is “reasonable” under Texas law.

• For buildings with more than 4 units:

  • Charging up to 10% of monthly rent in late fees is “reasonable.”

  • For example, if rent is $1000 a month, then a late fee of $100 is “reasonable” under Texas law.

To learn more, visit https://www.texastenant.org/while-you-are-renting/late-fees.

Tenants in subsidized housing, such as tenants living in public housing or renting with a Section 8 Housing Choice Voucher, are likely to pay less in late fees than other tenants. The lease will state how much the landlord can charge you in late fees. Tenants in subsidized housing are also protected by Texas law’s requirement that late fees be “reasonable.”

If a tenant is renting a lot for a mobile home that they own, Texas law does not have specific protections related to late fees. However, late fees should be reasonable. 

Learn more about the distinct rights a tenant that lives in a mobile home has at Texas Tenant Advisor.