Oregon Late Fee Calculator: 5% Cap Legal Limit
Calculate rent late fees and verify compliance with Oregon state regulations. Free instant calculator with legal limit verification.
Understanding Oregon Rent Late Fee Laws
Oregon has specific regulations governing how much landlords can charge for late rent payments. The state limits late fees to 5% of the monthly rent amount, ensuring fees remain proportional and reasonable. Additionally, Oregon law mandates a 4-day grace period, meaning landlords cannot charge late fees until rent is 5 or more days overdue.
Understanding these regulations is crucial for both landlords and tenants. Landlords must ensure their late fee policies comply with state law to avoid legal challenges, while tenants should verify that any late fees charged don't exceed legal limits. All late fee terms must be explicitly stated in the written lease agreement - verbal agreements are not enforceable. This calculator helps you instantly verify compliance and calculate the maximum allowable late fee for your situation.
Oregon Late Fee Legal Framework
Oregon's approach to rent late fees is governed by specific statutory limits. Use our free rent late fee calculator to instantly verify compliance with Oregon regulations. The state legislature has established a clear cap of 5% of monthly rent, providing landlords and tenants with definitive guidance on acceptable late fee amounts. This statutory limit prevents excessive charges while allowing landlords to recover administrative costs associated with late payments.
Key Legal Principles in Oregon
Written Agreement Requirement
Oregon law requires all late fee provisions to be explicitly documented in the written lease agreement. This protects tenants from surprise charges and ensures both parties understand the financial consequences of late payment. Verbal agreements about late fees are not legally enforceable—if it's not in writing, it cannot be collected. The lease must specify: (1) the exact late fee amount or percentage, (2) when the fee applies (e.g., after 4-day grace period), and (3) whether fees are one-time or recurring.
Mandatory 4-Day Grace Period
Unlike many states that leave grace periods to landlord discretion, Oregon mandates a 4-day grace period by statute. This means that even if a lease states "rent is due on the 1st," late fees cannot legally be assessed until day 5. This mandatory protection gives tenants a reasonable window to make payment without penalty, accounting for mail delays, banking processing times, and emergency situations. Any lease provision attempting to charge fees during this protected period is void and unenforceable. Courts in Oregon have consistently upheld this grace period requirement, awarding damages to tenants charged premature late fees.
Daily Late Fee Provisions
Oregon permits landlords to charge daily accruing late fees rather than a single one-time charge. This means a lease could specify "$10 per day" or "1% per day" for each day rent remains unpaid. However, even with daily fees, the total amount collected cannot exceed the state's overall maximum late fee cap of 5%. For example, if a $10/day fee would reach $the 5% limit after 15 days, no additional daily fees can be charged beyond that point. Daily rates must still be "reasonable" and documented in the lease.
Oregon Late Fee Limits and Restrictions
Based on 5% of your monthly rent amount. For example, on $1,500/month rent, the maximum late fee would be $75.00.
Landlords must wait 4 days after the due date before charging late fees. This is mandated by Oregon law and cannot be waived.
Landlords can charge daily accruing late fees in Oregon, but the total cannot exceed the overall maximum late fee cap.
Late fees must be specified in writing in your lease agreement. Verbal agreements about late fees are not legally enforceable in Oregon.
How to Calculate Oregon Rent Late Fees
Check your lease agreement
Review the late fee clause in your lease. It should specify the exact fee amount or percentage. If it doesn't comply with Oregon law (max 5%), the fee may be unenforceable.
Determine your grace period
Oregon law requires 4 days. Count calendar days from the due date. Weekends and holidays count.
Calculate the fee amount
Multiply your monthly rent by 0.05 (5%). Example: $1,200 × 0.05 = $60.00
Verify compliance
Use our calculator above to verify your late fee complies with Oregon law. The calculator automatically checks against all state limits and grace period requirements to ensure legal compliance.
Here's a real-world example for Oregon:
Common Mistakes to Avoid
Never charge late fees before the 4-day grace period expires. This violates Oregon law.
Late fees above 5% are illegal in Oregon and tenants can refuse to pay excess amounts.
Verbal late fee agreements are unenforceable. Always get late fee terms in writing in your lease.
Landlords cannot increase late fees during the lease term. Changes only apply at renewal.
While daily fees are allowed, the total still cannot exceed the overall maximum late fee cap.
Tenants must be notified of late fees in the lease agreement before they can be charged.
Real-World Oregon Late Fee Scenarios
Understanding how late fees apply in actual situations helps both landlords and tenants navigate Oregon's regulations. Here are common scenarios showing when fees are legal, when they're not, and how to calculate correctly. For more detailed information about grace period laws, see our complete guide to rent grace periods by state.
Situation: Maria rents an apartment for $1,800/month. Rent is due on the 1st. Her lease includes Oregon's mandatory 4-day grace period and specifies a 5% late fee. She pays on the 7th of the month.
Question: Can the landlord charge the late fee?
Answer: Yes, this is legal.
Maria paid 6 days after the due date, which is 2 days after Oregon's mandatory 4-day grace period expired. The 5% fee ($90.00) complies with Oregon law (maximum 5%). The fee was documented in the written lease and charged only after the grace period. This is a textbook example of proper late fee enforcement in Oregon.
Situation: James pays his $2,200/month rent on the 4th of the month. His landlord charges him a $$110 late fee on day 4.
Question: Is this legal?
Answer: No, this violates Oregon law.
Oregon mandates a 4-day grace period by statute. Landlords cannot charge late fees until day 5. Since James paid on day 4, he is within the protected grace period. This late fee charge is illegal and unenforceable. James should refuse to pay it and can demand a refund if already paid. He may also report this violation to Oregon's housing authority or attorney general's consumer protection division.
Situation: Sarah's lease states a $15 late fee for her $1,500/month apartment. She pays 11 days late.
Question: Must she pay the full $15 fee?
Answer: No, she only owes the legal maximum.
Oregon caps late fees at 5% of monthly rent. For Sarah's $1,500 rent, the maximum legal fee is $75.00 (5% of $1,500). The $15 lease provision violates state law. Sarah should pay only $75.00 and inform her landlord in writing that the lease clause exceeds statutory limits. If the landlord demands more, Sarah can file a complaint or counterclaim in small claims court. Courts in Oregon routinely void excessive late fee provisions and sometimes award damages to tenants.
Situation: Mike's lease allows daily late fees of $15/day after the grace period. He pays rent 20 days late on his $2,000/month apartment.
Question: Does he owe $300 (20 days × $15)?
Answer: No, only up to the legal maximum.
Oregon allows daily accruing fees, but the total still cannot exceed 5%. For Mike's $2,000 rent, the cap is $100.00 (5%). The $15/day would reach this limit after 6 days. No fees accrue after that point, so Mike owes $100.00, not $300.
Helpful Guides & Resources
Expand your knowledge with these comprehensive guides on rent late fees and tenant-landlord laws.
Oregon Rent Late Fee FAQs
Oregon allows late fees up to 5% of monthly rent. This limit is set by state law and applies to all residential leases in Oregon.
Yes, Oregon law requires a 4-day grace period before late fees can be charged. This means if rent is due on the 1st and you have a 4-day grace period, late fees cannot be assessed until day 5. This grace period is mandated by state law and cannot be waived in the lease.
Yes, Oregon law permits landlords to charge daily late fees that accrue after the grace period expires. However, these daily fees must still comply with the overall maximum late fee cap of 5%. The daily rate and total cap must be clearly stated in the lease agreement.
Yes, all late fees must be clearly stated in your written lease agreement to be legally enforceable in Oregon. The lease must specify: (1) the exact late fee amount or percentage, (2) when the fee applies (e.g., on day 6 after the due date), and (3) any grace period. Verbal agreements about late fees are not enforceable.
No, your landlord cannot increase late fees during your current lease term in Oregon. Late fees are part of your lease contract and can only be changed when the lease renews. Any mid-lease fee increase would violate the terms of your existing agreement. However, the landlord may propose new late fee terms for a lease renewal, subject to proper notice requirements (typically 30-60 days before lease expiration).
If you're charged a late fee that exceeds Oregon's legal limits (maximum 5%), you can: (1) refuse to pay the excess amount, (2) request a refund in writing if already paid, (3) file a complaint with Oregon's consumer protection agency or attorney general, or (4) sue in small claims court. Keep all documentation of the illegal charges and your lease agreement as evidence.
No, absolutely not. Oregon law mandates a 4-day grace period, and charging late fees before this period expires is illegal. If your rent is due on the 1st, you cannot be charged a late fee until day 5. Any early late fee charges violate state law.
Yes, late fees collected by landlords in Oregon are considered rental income and are tax deductible as ordinary business income. However, late fees that are never collected cannot be deducted as losses. Landlords should track all late fees collected and report them on Schedule E of their federal tax return.
This depends on state usury laws and your lease terms. In Oregon, if interest on late fees is not explicitly mentioned in the lease, it typically cannot be charged. If the lease does authorize interest on unpaid fees, the rate must comply with Oregon usury limits. Most landlords include late fees but not additional interest charges.
No, Oregon's residential late fee limits (5%) typically only apply to residential rental properties. Commercial leases are governed by different rules and generally allow higher late fees since they're negotiated between businesses. However, even commercial late fees must be "reasonable" under general contract law principles.
In most cases, no. Oregon law typically allows eviction only for non-payment of rent, not for unpaid late fees. Late fees are considered additional charges, not rent. However, if late fees remain unpaid for an extended period and are included as "additional rent" in your lease, they could potentially be grounds for eviction. It's best to address any late fee disputes promptly to avoid complications.
To dispute a late fee in Oregon: (1) Review your lease agreement and payment records, (2) write a formal dispute letter to your landlord citing the specific issue (wrong amount, improper timing, grace period violation), (3) provide documentation (bank records, cancelled checks, lease terms), (4) request a written response within 7-14 days, (5) if unresolved, contact Oregon's tenant rights hotline or file a small claims court action. Keep copies of all correspondence.