Maryland Late Fee Laws for Landlords (2026)
What the statute actually says
A lease may not provide a late-payment penalty above 5% of the rent due for the delinquent period. For weekly tenancies the limit is stated separately as no more than $3 per week or $12 per month.
Citation: Md. Code, Real Prop. § 8-208 · read the source
The most you can charge in Maryland
Worked from the statute above, on a monthly tenancy:
| Monthly rent | Maximum late fee | How it is worked out |
|---|---|---|
| $900 | $45.00 | 5% of $900 |
| $1,200 | $60.00 | 5% of $1,200 |
| $1,800 | $90.00 | 5% of $1,800 |
| $2,500 | $125.00 | 5% of $2,500 |
Work out your own figure with the late fee calculator →
Is there a grace period in Maryland?
No statutory grace period was found in the chapter cited above. That does not make a fee charged on day one automatically safe - a court still asks whether the fee is reasonable - but Maryland does not set a waiting period by statute. Whatever grace you give should be written into the lease so both sides are working from the same date.
Does the fee have to be in the lease?
Yes. Maryland 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.
Stop working late fees out by hand
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Start freeFrequently asked questions
What is the maximum late fee a landlord can charge in Maryland?
5% of the rent. On $1,200 rent that is $60.00. The rule is set by Md. Code, Real Prop. § 8-208.
How many days late before a landlord can charge a fee in Maryland?
Maryland sets no statutory grace period, so the lease governs. Put the number of days in writing.
Does a Maryland 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 Maryland?
Maryland does not address repeat fees by statute. Compounding a fee month after month on the same unpaid rent is the kind of charge courts treat as a penalty, so it is a risk worth avoiding.
Is a late fee the same as interest in Maryland?
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.