Late fee rules · Tennessee
Tennessee late fee rules
In counties covered by Tennessee's URLTA, a late charge — however described — can't exceed 10% of the amount of rent past due. That's 10% of the unpaid balance, not of the full monthly rent: if $300 of a $1,500 rent is outstanding, the max fee is $30.
What this means in practice
Like the deposit rules, this only applies in counties with more than 75,000 people (Nashville, Memphis, Knoxville, Chattanooga, and the other large counties). Elsewhere in Tennessee the lease governs — no statutory cap or grace period.
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 T.C.A. § 66-28-201(d). 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, counted from and including the due date — rent due the 1st means a fee is chargeable the 6th at the earliest. If day five lands on a Sunday or legal holiday, payment the next business day avoids the fee. 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.