Is there any limit to what may be charged as “late fees” for rent paid late?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is there any limit to what may be charged as “late fees” for rent paid late?
In the process of looking for a rental home in IN, I have run across what appear to be very large daily late fees as part of the lease agreements – in excess of $50 per day. Is this legal in this state? While I understand the need for late fees, that seems beyond “fair and reasonable” in any other arena.
Asked on October 1, 2010 under Real Estate Law, Alaska
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Where in Indiana are you looking because that surely does sound excessive?! Are you looking through owners that are renting on their own or through real estate brokers? Brokers may be a good source of information if you are just seeking to learn about the area and the local laws. It is my understanding that in Bloomington, Indiana the local courts have upheld a daily late fee of $5 per day on rental agreements as being a reasonable amount. I can not imagine that $50 a day would be reasonable but if it is based upon the size and the type of rental then it may be. Again, I would contact the state bard of realtors or a local real estate agent for information. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.