Is there any limit to what may be charged as “late fees” for rent paid late?
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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 13 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.
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