Vermont's Residential Rental Agreements chapter (9 V.S.A. ch. 137) sets no cap on late rent fees and no mandatory grace period. A late fee is enforceable only if the lease provides for it, and courts may decline to enforce a charge that is an unreasonable penalty.
No section of 9 V.S.A. Chapter 137 establishes a maximum late fee, a percentage limit, or a required grace period for residential rent, so there is no statutory requirement on the amount of a late charge. A late fee must be set out in the written lease to be charged at all, since without a statute it is purely a matter of contract. Under general Vermont contract principles, a late fee should be a reasonable estimate of the landlord's actual damages from late payment; a charge that functions as a penalty rather than liquidated damages may be unenforceable. A landlord also cannot collect late fees through self-help measures such as lockouts or shutting off utilities, which are independently prohibited. Any dispute over a late fee is resolved under contract and the lease terms.
No specific statutory penalty. An undisclosed or unreasonable late fee may be unenforceable under contract law, and using self-help such as a lockout or utility shutoff to collect it is independently unlawful.
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