California sets no fixed dollar or percentage cap on rent late fees, but a late fee in a residential lease is treated as liquidated damages. Under Civil Code § 1671, such a fee is valid only if it reasonably estimates the landlord's actual loss from late payment; arbitrary penalty fees are unenforceable.
California has no statute setting a maximum late fee. Instead, a late fee is a liquidated-damages clause governed by Civil Code § 1671(d), which makes such provisions in residential leases "void except that the parties... may agree... upon an amount which shall be presumed to be the amount of damage sustained by a breach thereof, when, from the nature of the case, it would be impracticable or extremely difficult to fix the actual damage." California courts (e.g., Orozco v. Casimiro) have voided late fees that function as penalties rather than genuine estimates of the landlord's costs, such as administrative expense and lost use of funds. A fee unrelated to actual damages is unenforceable even if the lease recites it.
An unenforceable penalty late fee cannot be collected, and amounts already paid may be recoverable by the tenant. Relying on an unlawful penalty fee in an eviction can defeat the unlawful detainer if it inflates the rent demanded.
Other ordinances people look up for this city. Green dot = verified primary-source excerpt.
Orange, CA
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Orange, CA
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Orange, CA
Construction in Orange is permitted Monday through Saturday from 7:00 AM to 8:00 PM, and on Sundays and federal holidays from 9:00 AM to 8:00 PM under OMC Ch...
Orange, CA
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Orange, CA
Vehicles parked on Orange streets for more than 72 consecutive hours without movement may be towed as abandoned under California Vehicle Code Section 22651 a...
Orange, CA
Pool barriers in Orange must be at least 5 feet high with self-closing, self-latching gates per California Building Code Section 3109 and Orange County Ordin...
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