N.C. Gen. Stat. § 42-46 caps residential late fees on monthly rent at $15 or 5% of the monthly rent, whichever is greater, and bars charging the fee until rent is at least five days late. The fee may be charged only once per late payment.
Under N.C. Gen. Stat. § 42-46, a late fee on a monthly residential tenancy may "not [] exceed fifteen dollars ($15.00) or five percent (5%) of the monthly rent, whichever is greater," and may be imposed only when rent is "five calendar days or more late, with the first day being the day after the rent was due." For weekly tenancies the cap is $4.00 or 5% of the weekly rent, whichever is greater. The statute states a late fee "may be imposed only one time for each late rental payment," so a landlord cannot stack or repeat the charge for the same overdue payment. The fee must also be disclosed in the rental agreement to be enforceable.
A late fee exceeding the § 42-46 cap, charged before the five-day grace period, or charged more than once for the same payment is unenforceable and may be recovered by the tenant in a civil action.
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Wilmington, NC
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