Work out the fee, then check it against what N.Y. Real Property Law § 238-a(2) actually allows. No sign-up, and the arithmetic is shown so you can put it on the notice.
Many states and cities cap late fees, require a minimum grace period, or require the fee to be stated in the lease. Check your local rules and your lease before charging.
Flat fee of $50.00 once the grace period passes.
General information only — not legal advice. Figures below were read from the New York statute text linked at the bottom of this page; statutes change, and local rules can be stricter.
Yes — $50 or 5% of the monthly rent, whichever is less
Yes — 5 days
Not required statewide by statute; required for rent-stabilized units
N.Y. Real Property Law § 238-a(2)
Pages that quote only the 5% figure get this wrong for most New York tenancies. The statute caps the fee at fifty dollars or five percent of the monthly rent, whichever is less — so 5% only governs below $1,000 rent. At $1,000 rent the two are equal; above it, $50 is the ceiling no matter how high the rent goes.
No late payment fee or charge may be demanded unless the rent has not been paid within five days of the date it was due. A lease that tries to charge from day two does not override that.
The statute reaches any “payment, fee, or charge” for late payment of rent. New York courts have treated a differently-labelled charge that functions as a late fee as a late fee for this purpose.
For rent-stabilized apartments, DHCR’s guidance is that a late fee is only lawful where a clause in the initial vacancy lease allows it, and the fee never becomes part of legal or preferential rent for renewal increase purposes.
A cooperative housing corporation outside Private Housing Finance Law articles 2, 4, 5 and 11 may charge a shareholder up to 8% of the monthly maintenance fee, but only where the proprietary lease or occupancy agreement provides for it.
Statute text read 20 October 2026.
Other states: Minnesota, Arizona. Or go back to the general late rent fee calculator.
Rentwelly applies late fees by rule and posts them to the ledger, so the tenant balance is right and the income lands in the right period.
Yes — $50 or 5% of the monthly rent, whichever is less. The rule is in N.Y. Real Property Law § 238-a(2). A lease cannot authorise more than the statute allows, so where there is a ceiling it governs whatever the lease says.
Yes — 5 days. A fee cannot be demanded until rent has gone unpaid for 5 days from the due date, whatever the lease says.
Not required statewide by statute; required for rent-stabilized units. As a practical matter, a fee that is not written into the lease is difficult to collect anywhere, however reasonable the amount.
It is the lesser of $50 and 5%, not 5% flat. Pages that quote only the 5% figure get this wrong for most New York tenancies. The statute caps the fee at fifty dollars or five percent of the monthly rent, whichever is less — so 5% only governs below $1,000 rent. At $1,000 rent the two are equal; above it, $50 is the ceiling no matter how high the rent goes.
Yes, a late fee you actually collect is rental income. The cleaner practice is to post the charge when it is applied and the payment when it arrives, so the tenant balance and your books agree rather than drifting apart.
More on the pricing page or contact us.