Tennessee Late Rent Fee Rules: Limit, Grace Period and Notice
Tennessee caps late rent fees — ≤10% — with a 5-day grace period under Tenn. Code §§ 66-28-201, 66-28-512. Set the rule once on the lease and the fee posts itself the day it is allowed.
The cap, the grace period and the wording all matter. The rule on each card is Tennessee's statutory position — your lease can be more lenient, never harsher.
≤10%
Maximum fee10% of the past-due rent.Ceiling for the lease setting
5days
Grace period5 days. The fee cannot post before the grace period ends.Applied automatically
In lease
Where it must be writtenA late fee is only enforceable if the lease states the amount (or rate), when it starts and how it is charged. Add it to the lease, not a later notice.In the lease template
Once
Compounding & daily feesOne fee per late rent period is the safe rule. Daily accruals and fees on fees are disallowed or capped in most states — Tennessee courts strike fees that read as a penalty.Reference
What a Tennessee late fee clause must say
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The amount, within the Tennessee limit10% of the past-due rent.Tenn. Code §§ 66-28-201, 66-28-512
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The grace periodTennessee gives the tenant 5 days before a fee can apply; the lease may give more.
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When it is assessedThe day after the grace period ends, once, for that rent period.
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How it is chargedAdded to the ledger as a separate line, never folded into rent — it stays visible and cannot be disputed as a rent increase.
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No fee on feesA late fee never accrues interest or a second fee; returned-payment charges are separate and must also be in the lease.
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Same rule for every tenantApply the lease rule uniformly; waiving it for one tenant and not another invites a fair-housing complaint.auto-applied
How it works
1 · Set the rule on the leaseLease → late fee: amount or percentage, and the grace period. The Tennessee limit above is the ceiling.
2 · Rent goes lateThe day after the grace period the fee posts to the tenant's ledger as its own line, with the date.
3 · Collect or waiveThe tenant pays it with rent (autopay picks it up); you can waive any fee from the ledger and it is logged.
Tennessee late fee FAQ
How much can a Tennessee landlord charge for late rent?
10% of the past-due rent (Tenn. Code §§ 66-28-201, 66-28-512).
Is there a grace period in Tennessee?
5 days.
Can I charge a daily late fee?
Daily fees are struck or capped in most states because they read as a penalty rather than a cost; one fee per rent period, stated in the lease, is the enforceable form — and the total must stay within the Tennessee cap.
Does the late fee count toward an eviction notice?
The pay-or-quit notice can include late fees the lease allows; the in-app notice lists rent and fees as separate lines with the total.
What if the lease says nothing about late fees?
Then you cannot charge one. Add the clause at renewal — a mid-term notice does not create the right.
