New York Late Fee Limits

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.

Late fees above the cap, or charged before the five-day grace period ends, are unenforceable; waiver clauses are void as against public policy.