If my rent is $845, is my landlord able to charge me a $100 late fee after 7 days?

I’ve read before that they aren’t allowed to charge over 10%.

Asked on July 19, 2015 under Real Estate Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

There is no hard and fast rule. Generally, judges will allow late fees if they aren't excessive; what is "excessive" is more than slightly subjective, and different judges may vary. A $100 late fee on $845 is around 11.8%...since I have definitely seen 10% late fees allowed, it is not necessarily the case that an 11-12% fee would be disallowed. Furthermore, in your opinion, you should be paying a $84.50 fee, or $15.50 less; is that $15.50 worth getting hauled into court, and having to defend yourself from a lawsuit or eviction, since if you don't pay the fee, the landlord may take legal action.


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