Texas Rent Late Fee Calculator
Calculate rent late fees and verify compliance with Texas state regulations. Free instant calculator with legal compliance verification.
In Texas, late fees are regulated with a specific cap depending on the number of units in the rental property. For properties with four or fewer units, the maximum late fee is 12% of the rent. For properties with more than four units, the cap is set at 10%. This framework is designed to balance the interests of landlords in collecting timely rent and the protection of tenants from excessive fees.(Tex. Prop. Code § 92.019)
The Texas Property Code mandates a two-day grace period before late fees can be applied, ensuring tenants have a short buffer period to make payments without penalties. This regulation aims to provide fairness and consistency across rental agreements in the state.
Related Statutes
Texas law clearly defines the maximum allowable late fee a landlord can charge, which is a percentage of the rent, ensuring transparency and preventing exorbitant penalties. The law distinguishes between smaller and larger properties to accommodate varying economic scales and tenant demographics.
Key Factors:
- Size of the rental property
- Percentage of rent as a cap
- Mandatory grace period
Houston
Houston follows the state law closely with no additional municipal regulations on late fees.
Learn moreClarification on Late Fee Caps
The Texas legislature clarified that combined initial and daily late fees must not exceed the stated caps, reinforcing the protection against excessive fees.
Oklahoma
No specific cap but must be reasonable.
Louisiana
No statutory cap; reasonableness standard applies.
New Mexico
Reasonable fees allowed with no specific cap.
Arkansas
No statutory cap; reasonableness standard applies.
Landlord Best Practices:
- •Ensure lease agreements clearly state the late fee structure, adhering to state caps.
- •Provide tenants with reminders before rent due dates to avoid late fees.
- •Consider offering a longer grace period as a goodwill gesture.
Tenant Best Practices:
- •Pay rent promptly and utilize the grace period wisely.
- •Communicate with landlords proactively if payment issues arise.
- •Review lease agreements carefully to understand late fee policies.
Frequently Asked Questions - Texas
2-day grace period. Maximum 12% (properties with 4 or fewer units) or 10% (properties with more than 4 units). Initial + daily fees combined must not exceed caps. Tex. Prop. Code § 92.019.
View Official State Law →Updated October 2025