Late fee rules · New York
New York late fee rules
Since the 2019 HSTPA, a late fee can't exceed $50 or 5% of the monthly rent, whichever is less, and can only be charged after rent is five days late.
What this means in practice
The cap is the lesser number — on a $2,000 rent, the maximum fee is $50, not $100.
Whatever your state allows, the fee only works if it's written into the lease and applied every time. Run your numbers through the late fee calculator to see what a flat, percentage, or per-day fee comes to on your rent — and use the late rent notice when it's time to put it in writing.
Read the law yourself
The authority here is N.Y. Real Property Law § 238-a. It's shorter than you'd think, and knowing the exact wording is worth ten summaries — including this one.
Not legal advice. General information, not legal advice. Cities can be stricter than the state, statutes change, and courts weigh lease language heavily. When real money is in dispute, talk to a local attorney.
Common questions
Do I have to give a grace period?
Five days, by statute. Even where none is required, many landlords give a short one — it makes the fee feel like a boundary instead of a trap, and it's the pattern courts and tenants both respect.
Can I charge a late fee if it isn't in the lease?
Practically, no. In nearly every state a late fee is a lease term — if the lease is silent, add it at renewal rather than improvising mid-tenancy.
Can I charge daily late fees?
Some leases layer a per-day amount on top of a flat fee. Whether that holds up depends on your state's cap or reasonableness rule — total the worst-case month and ask whether a judge would call it an estimate of damages or a penalty.