Tennessee rent late fee law

What your landlord is allowed to charge when rent is late, how soon they can charge it, and what to do about a fee the law doesn't allow.

The cap

Under Tenn. Code Ann. § 66-28-201(d), In the 17 counties Tennessee's landlord-tenant act covers, any charge for late rent — however the lease describes it — may not exceed 10% of the amount of rent past due. Coverage is set by county population over 75,000 in the 2010 federal census (Tenn. Code Ann. § 66-28-102(a)), and it is frozen there: a 2021 amendment removed the language that let growing counties come under the act, so today's population does not matter. The covered counties are Anderson, Blount, Bradley, Davidson, Hamilton, Knox, Madison, Maury, Montgomery, Rutherford, Sevier, Shelby, Sullivan, Sumner, Washington, Williamson, and Wilson. Everywhere else in Tennessee — including Putnam County, which has since grown past 75,000 — this statute does not apply and only the lease and general contract law govern.

When the fee can start

A five-day grace period runs from the day rent is due, with the due date itself counting as day one. If the last day of the grace period falls on a Sunday or legal holiday and the tenant pays the next business day, no fee may be charged at all. The cap and grace period apply regardless of what the lease says; whether any fee may be charged remains a matter of the rental agreement. In covered counties the act also preempts the entire field, so no city or county ordinance can add to it or conflict with it (Pub. Ch. 182, § 1 (2021)).

If you've been charged an illegal fee

The statute provides no fine or damages multiplier: a fee exceeding 10%, or one charged inside the grace period, is unlawful and unenforceable to that extent. Demand a refund, and raise the statute if the landlord tries to collect.

Common questions

Is there a limit on late fees for rent in Tennessee?

Yes. Under Tenn. Code Ann. § 66-28-201(d), In the 17 counties Tennessee's landlord-tenant act covers, any charge for late rent — however the lease describes it — may not exceed 10% of the amount of rent past due. Coverage is set by county population over 75,000 in the 2010 federal census (Tenn. Code Ann. § 66-28-102(a)), and it is frozen there: a 2021 amendment removed the language that let growing counties come under the act, so today's population does not matter. The covered counties are Anderson, Blount, Bradley, Davidson, Hamilton, Knox, Madison, Maury, Montgomery, Rutherford, Sevier, Shelby, Sullivan, Sumner, Washington, Williamson, and Wilson. Everywhere else in Tennessee — including Putnam County, which has since grown past 75,000 — this statute does not apply and only the lease and general contract law govern.

Can my landlord charge a late fee the day rent is due in Tennessee?

No. A five-day grace period runs from the day rent is due, with the due date itself counting as day one. If the last day of the grace period falls on a Sunday or legal holiday and the tenant pays the next business day, no fee may be charged at all.

What can I do if my landlord charged an illegal late fee in Tennessee?

The statute provides no fine or damages multiplier: a fee exceeding 10%, or one charged inside the grace period, is unlawful and unenforceable to that extent. Demand a refund, and raise the statute if the landlord tries to collect.