Alabama Late Fees: No Statutory Cap or Grace Period

Title 35, Chapter 9A does not limit late fees or require a grace period. Whatever late fee the lease states applies, and rent is due on the date set in the agreement. Alabama courts, however, will not enforce a late fee that operates as an unreasonable penalty rather than a genuine estimate of the landlord's loss, so excessive fees risk being struck down. Late fees are collectible as part of the amount owed: under Ala. Code § 35-9A-421(b) a pay-or-quit notice for unpaid rent may specify "the amount of rent and any late fees owed." Most Alabama landlords adopt a short grace period and a flat or percentage fee by lease term rather than by statute.

No specific statutory penalty. An unreasonable late fee may be held an unenforceable penalty by an Alabama court, and only the reasonable, actual amount of rent and fees can be recovered through a § 35-9A-421 eviction notice.