Texas: Late Rent Fee Limits

Requirements one by one

The safe-harbor cap

Texas does not simply forbid a "high" late fee; it defines when a fee is
reasonable and treats reasonableness as the test of legality. Under
§ 92.019(a-1)(1), a fee is automatically reasonable if it is no more than 12
percent of the rent for the rental period for a dwelling in a structure with
four or fewer units, or 10 percent for a structure with more than
four units. The percentage runs against the rent for the rental period under
the lease — normally the monthly rent — not against only the unpaid balance.

This is a safe harbor, not a hard ceiling. Section 92.019(a-1)(2) lets a landlord
charge more than 12% or 10% if, but only if, the higher fee does not exceed
the landlord's "uncertain damages ... related to the late payment of rent,
including direct or indirect expenses, direct or indirect costs, or overhead
associated with the collection of late payment." A landlord who goes above the
percentage carries the burden of showing the fee reflects those real costs; a fee
inside the percentage needs no such proof.

Two full days of grace, and it must be in the lease

Two preconditions apply before any fee is lawful. First, § 92.019(a)(3) bars a
fee until "any portion of the tenant's rent has remained unpaid two full days
after the date the rent was originally due." Second, § 92.019(a)(1) allows a fee
only if "notice of the fee is included in a written lease." A lease that says
nothing about a late fee gives the landlord no fee to collect, and no fee can be
charged on day one or day two of lateness.

One-time and daily fees

Section 92.019(b) permits a landlord to combine "an initial fee and a daily fee
for each day any portion of the tenant's rent continues to remain unpaid." The
statute then treats "the combined fees ... as a single late fee," so the initial
charge plus every day's charge added together must still fit within the safe
harbor (or be justified as actual damages). A daily fee is not a separate,
uncapped charge.

If the landlord overcharges

Section 92.019(c) gives the tenant a fixed remedy: a landlord who violates the
section "is liable to the tenant for an amount equal to the sum of $100, three
times the amount of the late fee collected in violation of this section, and the
tenant's reasonable attorney's fees." A lease term that tries to waive these
protections is void under § 92.019(d).

What trips people up

The 12%/10% figures are a floor of safety, not the whole rule. Being at or
under the percentage guarantees the fee is reasonable, but going over it is not
automatically illegal — it just shifts the burden onto the landlord to prove the
fee matches actual collection costs. Many lease forms (and even some template
services) also flip the two tiers; the statute is 12% for buildings of four or
fewer units and 10% for larger buildings.

Daily fees still count against the cap. A landlord cannot dodge the limit by
labeling most of the charge a "daily" fee. The initial fee and all daily fees for
a given late payment are added together and measured as one late fee.

A written lease is essential. On an oral or handshake tenancy with no written
late-fee term, there is no lawful late fee at all, no matter how late the rent is.

Common questions

My building has 60 units and the lease charges a 12% late fee. Is that
allowed? Not under the safe harbor. For a structure with more than four units
the safe-harbor figure is 10%. A 12% fee on that building is lawful only if the
landlord can show it does not exceed the actual costs of collecting the late rent.

Can I get the fee back if it was too high? Yes. If the fee violated the
section, § 92.019(c) lets you recover $100, three times the fee the landlord
collected, and your reasonable attorney's fees.

Does paying the late fee mean I give up these rights? No. Section 92.019(e)
states that paying the fee "does not waive the right or remedies provided by this
section," and § 92.019(d) voids any lease term that tries to waive them.

Statutes and sources

• Tex. Prop. Code § 92.019 — late payment of rent; fees. Fee allowed only if
  in a written lease, reasonable, and rent is two full days late; reasonable if
  within 12%/10% safe harbor or up to the landlord's actual damages; initial plus
  daily fees count as one; overcharge remedy of $100 + treble + attorney's fees;
  waiver void.

  (a) A landlord may not collect from a tenant a late fee for failing to pay any
  portion of the tenant's rent unless: (1) notice of the fee is included in a
  written lease; (2) the fee is reasonable; and (3) any portion of the tenant's
  rent has remained unpaid two full days after the date the rent was originally
  due. (a-1) For purposes of this section, a late fee is considered reasonable
  if: (1) the late fee is not more than: (A) 12 percent of the amount of rent for
  the rental period under the lease for a dwelling located in a structure that
  contains not more than four dwelling units; or (B) 10 percent of the amount of
  rent for the rental period under the lease for a dwelling located in a
  structure that contains more than four dwelling units; or (2) the late fee is
  more than the applicable amount under Subdivision (1), but not more than
  uncertain damages to the landlord related to the late payment of rent ... (b) A
  late fee under this section may include an initial fee and a daily fee for each
  day any portion of the tenant's rent continues to remain unpaid, and the
  combined fees are considered a single late fee for purposes of this section.
  (c) A landlord who violates this section is liable to the tenant for an amount
  equal to the sum of $100, three times the amount of the late fee collected in
  violation of this section, and the tenant's reasonable attorney's fees. (d) A
  provision of a lease that purports to waive a right or exempt a party from a
  liability or duty under this section is void.

Official source: https://tcss.legis.texas.gov/resources/PR/htm/PR.92.htm (accessed 2026-07-20)
- Tex. Prop. Code § 92.0191 — statement of late fees; a tenant may request a
written statement of any late fee owed.

A tenant may request that the landlord provide to the tenant a written
statement of whether the tenant owes a late fee to the landlord and, if so, the
amount of the late fee. On request of the tenant, the landlord shall provide
the statement to the tenant by any established means regularly used for written
communication between the landlord and the tenant. A landlord's failure to
respond does not affect the tenant's liability for any late fee owed to the
landlord.

Official source: https://tcss.legis.texas.gov/resources/PR/htm/PR.92.htm (accessed 2026-07-20)