Minn. Stat. Sec. 504B.177 caps late fees on residential rent at 8% of the overdue rent payment and allows a late fee only if landlord and tenant agreed to it in writing. The statute says a late fee may never exceed eight percent of the overdue rent, and the agreement must specify when the fee applies.
Under Minn. Stat. Sec. 504B.177(a), 'a landlord of a residential building may not charge a late fee if the rent is paid after the due date, unless the tenant and landlord have agreed in writing that a late fee may be imposed,' and the agreement must state when the fee will be charged. The statute sets a hard cap: 'In no case may the late fee exceed eight percent of the overdue rent payment.' The 'due date' for this calculation excludes any earlier discounted-payment date in the lease, and a late fee is not treated as interest or liquidated damages. Federal housing-assistance program rules may govern instead where they apply.
A late fee charged without a written agreement, or one exceeding 8% of the overdue rent, is unlawful under Sec. 504B.177; the tenant is not obligated to pay the unlawful portion and may raise it as a defense or seek recovery.
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