Right to Charge Late Fee

Landlord asked the DHCR if he could charge tenant a late fee if rent was paid after a certain day of the month. In an opinion letter, the DHCR said yes, if a lease clause permitting such a fee was included in tenant's vacancy and renewal leases and if the amount of the late fee is reasonable. A fee of $50 when the rent is $405 would be unreasonable. The DHCR generally considers 5 percent of the monthly rent to be a reasonable late fee.

DHCR Opin. Ltr. by Charles Goldstein (3/16/01) [4-pg. doc.]