Colorado Late Fee Laws for Landlords (2026)
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)
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 each payment was recorded against the right charge. 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, because Colorado law requires it, applies each payment to rent first: every open month's rent, oldest month first, and only then late fees. A late fee the payment does not cover stays on the ledger as owed, so the ledger shows where every dollar went. The rent roll shows exactly which day a charge landed and why, and the tenant sees the same breakdown in their portal.
Stop working late fees out by hand
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Start freeKey statute for Colorado
Authority: Colo. Rev. Stat. § 38-12-105
Statute text not quoted here yet — read it at the link above.
What this means: 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.
Citation from our review of the chapter cited above (see "How we checked"); statute text not quoted here yet.
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.
Related
Questions from Colorado landlords
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