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Property management glossary
Money & accounting

Late fee

Plain-English definition

A lease-authorized charge assessed when rent is not paid on time, subject to applicable law.

What late fee means in practice

The lease, local rules, grace periods, amount limits, and required notices can all affect whether and when a late fee is enforceable. The ledger should record the fee separately from base rent.

Example

After the lease’s due date and applicable grace period pass, the system adds the permitted fee as its own ledger charge.

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This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.