Colorado Late Fee Laws for Landlords (2026)

Updated September 2026 · Written for self-managing landlords · Not legal advice

In short: Colorado caps rent late fees at the greater of $50 or 5%, and no fee may be charged until rent is 7 days late. The rule lives in Colo. Rev. Stat. § 38-12-105.

What the statute actually says

A late fee may not exceed the greater of $50 or 5% of the past-due rent, and only one late fee may be charged per late payment no matter how long it stays unpaid.

Citation: Colo. Rev. Stat. § 38-12-105 · read the source (code mirror)

Why this links to a code mirror. Colorado publishes its statutes through a LexisNexis portal rather than the legislature site. The citation is the statute; the link is the best freely readable copy of it.

This rule changed recently. Added effective October 1, 2021 (SB 21-173).

The most you can charge in Colorado

Worked from the statute above, on a monthly tenancy:

Monthly rent	Maximum late fee	How it is worked out
$900	$50.00	greater of $50 or 5% ($45.00)
$1,200	$60.00	greater of $50 or 5% ($60.00)
$1,800	$90.00	greater of $50 or 5% ($90.00)
$2,500	$125.00	greater of $50 or 5% ($125.00)

Work out your own figure with the late fee calculator →

The grace period in Colorado

Colorado requires a grace period of 7 days. A late fee charged before that is not enforceable, however the lease is worded. Day one of the grace period is the due date itself, so rent due on the 1st can first carry a fee on the 8th.

Does the fee have to be in the lease?

Yes. Colorado requires the late fee to be stated in the written rental agreement. A fee that is not in the lease is not collectable, no matter how reasonable the amount.

Charging it without getting it wrong

Most late-fee disputes are not about the amount. They are about the date the clock started, whether the fee was in the lease, and whether a payment got applied to the fee before the rent. Those are bookkeeping problems, and they are the ones that lose in court.

LandlordPro applies the grace period you set, charges the fee once, and applies payments to rent before fees, so the ledger tells the same story the statute does. The rent roll shows exactly which day a charge landed and why, and the tenant sees the same breakdown in their portal.

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Frequently asked questions

What is the maximum late fee a landlord can charge in Colorado?

The greater of $50 or 5%. On $1,200 rent that is $60.00. The rule is set by Colo. Rev. Stat. § 38-12-105.

How many days late before a landlord can charge a fee in Colorado?

7 days. A fee charged before the grace period runs out is not enforceable.

Does a Colorado late fee have to be in the lease?

Yes. The statute requires the fee to be set out in the written rental agreement, so a fee charged without one is not enforceable.

Can a landlord charge a late fee every month the rent stays unpaid in Colorado?

No. The statute allows only one late fee per late payment, however long it goes unpaid.

Is a late fee the same as interest in Colorado?

No. A late fee is a one-off charge for the administrative cost of a late payment. Interest accrues over time and is regulated separately. Charging both on the same rent invites a challenge.