Indiana's landlord-tenant statutes contain no late-fee cap, no required grace period, and no dedicated late-fee provision for residential rent. A late fee is enforceable only if the written lease provides for it. Indiana courts will not enforce a fee that operates as a punitive penalty rather than a reasonable estimate of the landlord's actual damages.
No Indiana statute sets a maximum amount, percentage, or grace period for residential rent late fees, and Title 32, Article 31 contains no dedicated late-fee provision. A late fee is therefore purely a matter of contract: it is enforceable only when written into the lease, and absent such a clause the landlord cannot charge one. Under Indiana contract law a charge that functions as a penalty, rather than as liquidated damages bearing a reasonable relationship to the landlord's actual loss, may be unenforceable. There is no statutory requirement that rent be a certain number of days late before a fee applies; any grace period exists only if the lease grants one.
No specific statutory penalty. A late fee not provided for in the lease is unenforceable, and a fee a court finds to be a punitive penalty rather than a reasonable estimate of damages may be reduced or refused enforcement.
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