What late fees can a landlord charge in Texas?
Texas allows a residential late fee only if it is in the written lease and rent has remained unpaid for two full days after the due date — rent due on the 1st cannot draw a fee before the 4th.
A fee is automatically considered reasonable up to 12% of a month's rent in buildings of four or fewer units, or 10% in larger buildings, counting initial and daily fees together. Charging an unlawful late fee costs the landlord $100 plus three times the fee collected plus the tenant's attorney's fees, and the statute cannot be waived by lease language.
Texas late fees at a glance
| Statutory cap | Safe harbor: a late fee is presumptively reasonable up to 12% of monthly rent (structure with 4 or fewer units) or 10% (more than 4 units); higher fees are lawful only if justified as uncertain damages from late payment (§ 92.019(a-1)). Initial + daily fees combine into a single fee for the cap. |
|---|---|
| Mandatory grace period | 2 days |
| Must be in the lease | Yes |
| Daily fees | Yes — an initial fee plus a daily fee per day unpaid, but the combined total is one late fee measured against the reasonableness standard. |
| Reasonableness standard | Fees within the 12%/10% safe harbor are presumed reasonable; above it, the landlord bears the burden of proving the fee tracks uncertain damages including collection costs and overhead. |
Notes and caveats
Statute citations
- Tex. Prop. Code § 92.019 (a), (a-1), (b), (c) Official source
How this record was verified: Web verification against the Texas State Law Library landlord-tenant guides (guides.sll.texas.gov, official state source summarizing Prop. Code ch. 92) and full statute text of Prop. Code §§ 92.019, 92.103, 92.104, 92.107, 92.109 via legal databases; statutes.capitol.texas.gov URLs cited for the official text.