New York Statewide Rule
New York Late Fee Limits
Key Facts
- Statute
- RPL Section 238-a (HSTPA 2019)
- Late fee cap
- $50 or 5% of monthly rent, whichever is less
- Grace period
- 5 days after rent is due
- Background-check fee
- Capped at $20 or actual cost
- Waiver
- Void as against public policy
Summary
Real Property Law Section 238-a, added by the 2019 HSTPA, caps residential late fees at $50 or 5% of the monthly rent, whichever is less, and bars any late fee until rent is more than five days overdue. Lease provisions that try to waive these limits are void.
No landlord, lessor, sub-lessor or grantor may demand any payment, fee, or charge for the late payment of rent unless the payment of rent has not been made within five days of the date it was due, and such payment, fee, or charge shall not exceed fifty dollars or five percent of the monthly rent, whichever is less; provided a cooperative housing corporation, other than a cooperative housing corporation subject to the provisions of article two, article four, article five or article eleven of the private housing finance law, shall be permitted to charge a tenant that is a dwelling unit owner or shareholder of such cooperative housing corporation a fee of up to eight percent of the monthly maintenance fee for the late payment of the monthly maintenance fee if the proprietary lease or occupancy agreement provides for such fee.
Full Breakdown
RPL Section 238-a provides that a late fee "shall not exceed fifty dollars or five percent of the monthly rent, whichever is less." No landlord may "demand any payment, fee, or charge for the late payment of rent unless the payment of rent has not been made within five days of the date it was due," creating a mandatory five-day grace period. The statute also restricts application and background-check fees, capping the latter at $20 or actual cost. Critically, "any provision of a lease or contract waiving or limiting the provisions of this section shall be void as against public policy," so landlords cannot contract around the cap or grace period.
Violations & Penalties
Late fees above the cap, or charged before the five-day grace period ends, are unenforceable; waiver clauses are void as against public policy.
Frequently Asked Questions
What is the maximum late fee in New York?
How long is the late-rent grace period in New York?
Can a lease set a higher late fee in New York?
Sources
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