RESIDENTIAL LEASE ADDENDUM

LATE FEE ADDENDUM – STATE OF OREGON

[// GUIDANCE: This standalone addendum is intended to be attached to and incorporated into an existing Oregon residential lease or rental agreement. Replace all bracketed fields before execution. Maintain the formatting to ensure clarity and enforceability.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

This Late Fee Addendum (the “Addendum”) is entered into effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

• [LANDLORD LEGAL NAME], having a mailing address of [LANDLORD ADDRESS] (“Landlord”); and
• [TENANT LEGAL NAME(S)], collectively and individually, having a mailing address of [TENANT ADDRESS] (“Tenant”).

RECITALS

A. Landlord and Tenant are parties to that certain Residential Lease or Rental Agreement dated [ORIGINAL LEASE DATE] (the “Lease”) for the premises commonly known as [PREMISES ADDRESS] (the “Premises”).
B. The Lease is governed by the Oregon Residential Landlord and Tenant Act (the “Act”).
C. The parties desire to amend the Lease to establish clear, legally compliant late-rent-fee terms consistent with the Act, including ORS 90.260.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

2. DEFINITIONS

For purposes of this Addendum, capitalized terms have the meanings set forth below. Undefined capitalized terms have the meanings assigned in the Lease.

“Due Date” means the date each Rent installment is contractually due under the Lease, currently the ___ day of each calendar month.

“Grace Period” means the statutory period beginning on the Due Date and ending at 11:59 p.m. on the [4TH] day thereafter, during which no Late Fee may accrue or be assessed.

“Late Fee” means any charge assessed under this Addendum due to Tenant’s failure to pay Rent in full by the expiration of the Grace Period.

“Maximum Allowable Late Fee” means the highest fee or rate permitted under ORS 90.260 or any successor statute, as such may be amended from time to time.

“Rent” means the periodic rent amount currently set at $[MONTHLY RENT] per month, or such other amount as may be established pursuant to the Lease.

3. OPERATIVE PROVISIONS

3.1 Establishment of Late Fee.
(a) If Tenant fails to pay the full amount of Rent on or before the last day of the Grace Period, Tenant shall owe Landlord a Late Fee calculated in compliance with Section 3.2.
(b) The Late Fee is due and payable immediately upon assessment and constitutes additional Rent.

3.2 Calculation Method. Landlord shall assess Late Fees using the following method (check one and complete applicable blanks):

☐ Flat-Fee Method: A one-time flat fee of $[FLAT FEE AMOUNT] per rental period, which shall not exceed the Maximum Allowable Late Fee.

☐ Daily-Fee Method: A daily fee of $[DAILY FEE AMOUNT] for each day Rent remains unpaid after the Grace Period, not to exceed ___ days per rental period and not to exceed the Maximum Allowable Late Fee.

[// GUIDANCE: Under ORS 90.260, three calculation methods are permitted—flat amount, daily amount, or percentage of Rent. Use only ONE method. Confirm dollar amounts or percentages comply with then-current statutory caps (e.g., 5 % of monthly Rent or the statutory dollar cap, whichever is greater).]

3.3 Notice of Late Fee. Landlord may assess the Late Fee without additional written demand after the Grace Period; however, for transparency Landlord will provide Tenant with either:
(a) A contemporaneous written notice of the Late Fee amount; or
(b) An itemized accounting on the next Rent statement.

3.4 Application of Payments. Payments are applied in the following order unless otherwise required by law: (i) outstanding Late Fees, (ii) past-due Rent, (iii) current Rent, (iv) all other charges.

3.5 No Acceleration. Late Fees assessed under this Addendum shall not accelerate or compound. No interest will accrue on Late Fees except as allowed under the Act upon entry of judgment.

4. REPRESENTATIONS & WARRANTIES

4.1 Landlord’s Representations. Landlord represents and warrants that:
(a) The Late Fee structure in this Addendum complies with all applicable Oregon statutes, including the Act; and
(b) Landlord has the legal right and authority to enter into and perform this Addendum.

4.2 Tenant’s Representations. Tenant represents and warrants that:
(a) Tenant has reviewed the Addendum and had an opportunity to consult counsel; and
(b) Tenant understands the Late Fee terms and acknowledges they are reasonable and not a penalty.

4.3 Survival. The representations and warranties set forth in this Section survive termination of the Lease to the extent necessary to enforce accrued obligations.

5. COVENANTS & RESTRICTIONS

5.1 Tenant Covenants. Tenant shall pay Late Fees strictly in accordance with this Addendum and shall not withhold, offset, or deduct Late Fees except as expressly permitted by law or written agreement.

5.2 Landlord Covenants. Landlord shall not impose or collect Late Fees in excess of the Maximum Allowable Late Fee, nor prior to expiration of the Grace Period.

5.3 Modification. Any change to the Late Fee amount or calculation method requires an amendment to this Addendum and at least 30 days’ prior written notice to Tenant, or such longer period as the Act may require.

6. DEFAULT & REMEDIES

6.1 Event of Default. Failure to pay any Late Fee within the cure period stated in a valid nonpayment notice constitutes a material breach of the Lease, entitling Landlord to all remedies for nonpayment of Rent, including termination and eviction.

6.2 Notice & Cure. Landlord shall provide Tenant with any statutory notice (e.g., 72-hour or 144-hour notice) required before commencing an eviction action based on unpaid Late Fees.

6.3 Graduated Remedies. In addition to eviction, Landlord may:
(a) Apply any security deposit to unpaid Late Fees;
(b) Recover reasonable attorney fees and court costs as provided in the Lease and the Act; and
(c) Pursue any other lawful remedies.

7. RISK ALLOCATION

7.1 Indemnification. Not applicable pursuant to Metadata directive.

7.2 Limitation of Liability. Nothing in this Addendum shall impose liability greater than or inconsistent with limits established under applicable Oregon law, including the Act.

7.3 Insurance. No additional insurance requirements are imposed by this Addendum.

7.4 Force Majeure. Landlord’s delay in providing notice or assessing Late Fees due to events beyond Landlord’s reasonable control (e.g., natural disaster, system outage) is excused.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Addendum and the Lease are governed by the laws of the State of Oregon, without regard to conflict-of-law principles.

8.2 Forum Selection. Any action or proceeding arising out of or relating to the Lease or this Addendum shall be brought exclusively in the [COUNTY NAME] County Circuit Court—Housing Division (or its successor) (the “Housing Court”).

8.3 Arbitration. Arbitration is expressly excluded.

8.4 Jury Trial. Each party expressly retains its constitutional right to a trial by jury. No provision of the Lease or this Addendum shall be construed as a waiver of that right.

8.5 Injunctive Relief. Nothing in this Addendum limits Landlord’s statutory right to seek injunctive relief, including but not limited to eviction and possession of the Premises.

9. GENERAL PROVISIONS

9.1 Integration. This Addendum supplements and forms a part of the Lease. Except as expressly amended, the Lease remains in full force and effect.

9.2 Conflicts. If any provision of this Addendum conflicts with the Lease, the provision of this Addendum controls with respect to Late Fees.

9.3 Amendment & Waiver. No amendment or waiver is effective unless in a signed writing. A party’s waiver of any breach is not a waiver of any other or subsequent breach.

9.4 Assignment. Tenant may not assign rights or delegate duties under this Addendum without Landlord’s prior written consent, except as may be allowed under the Act.

9.5 Severability. If any provision of this Addendum is held invalid, the remaining provisions remain enforceable to the fullest extent permitted by law, and the invalid provision shall be reformed to achieve its original intent within legal limits.

9.6 Counterparts; Electronic Signatures. This Addendum may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures transmitted electronically (including via PDF or e-signature platform) are deemed original and binding.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties hereto have executed this Late Fee Addendum as of the Effective Date.

LANDLORD:

[LANDLORD LEGAL NAME]
By: _____
Name: ____
Title: _____
Date: ____

TENANT(S):

[TENANT LEGAL NAME]
Date: ________

[TENANT LEGAL NAME]
Date: ________

[Add additional signature lines as needed]

[Notary Acknowledgment if required under local practice—generally not required for residential lease addenda in Oregon.]

[// GUIDANCE:
1. Verify the chosen Late Fee method and amounts comply with ORS 90.260, including (a) the 4-day grace period, (b) the permissible calculation methods, and (c) the statutory dollar or percentage cap in effect on the Effective Date.
2. Reconcile this Addendum with any existing late-fee language in the Lease; eliminate duplicates.
3. Serve copies to all adult occupants and retain proof of service in the lease file.
4. If modifying the Late Fee mid-tenancy, provide statutory advance written notice (currently 30 days) before the change takes effect.]