Texas 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 Tex. Prop. Code § 92.019, Texas requires every rental late fee to be reasonable. The statute gives landlords a safe harbor: a fee is considered reasonable if it is no more than 12% of the monthly rent in a building with four or fewer units, or 10% in a larger building. A landlord may exceed those percentages only if the fee is no more than the landlord's uncertain damages from the late payment, which § 92.019(a-1)(2) says may include direct or indirect expenses, costs, or collection overhead. An initial fee plus daily fees are allowed, but together they count as a single late fee subject to the same limits.

When the fee can start

A late fee may not be charged unless some portion of the rent has remained unpaid for two full days after the date it was originally due. The fee must be disclosed in a written lease — no lease clause, no late fee. Lease provisions that try to waive these protections are void.

If you've been charged an illegal fee

A landlord who violates the late-fee statute owes the tenant $100, plus three times the amount of the illegally collected fee, plus the tenant's reasonable attorney's fees. Tenants can also request a written statement of late fees owed under § 92.0191.

Common questions

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

Yes. Under Tex. Prop. Code § 92.019, Texas requires every rental late fee to be reasonable. The statute gives landlords a safe harbor: a fee is considered reasonable if it is no more than 12% of the monthly rent in a building with four or fewer units, or 10% in a larger building. A landlord may exceed those percentages only if the fee is no more than the landlord's uncertain damages from the late payment, which § 92.019(a-1)(2) says may include direct or indirect expenses, costs, or collection overhead. An initial fee plus daily fees are allowed, but together they count as a single late fee subject to the same limits.

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

No. A late fee may not be charged unless some portion of the rent has remained unpaid for two full days after the date it was originally due.

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

A landlord who violates the late-fee statute owes the tenant $100, plus three times the amount of the illegally collected fee, plus the tenant's reasonable attorney's fees. Tenants can also request a written statement of late fees owed under § 92.0191.