Tennessee Late Fee Laws for Landlords (2026)
What the statute actually says
Any charge or fee for late payment of rent, however it is described, may not exceed 10% of the rent past due, and none may be charged until a five-day grace period (counting the due date) has passed.
Citation: Tenn. Code Ann. § 66-28-201(d) · read the source (code mirror)
The most you can charge in Tennessee
Worked from the statute above, on a monthly tenancy:
| Monthly rent | Maximum late fee | How it is worked out |
|---|---|---|
| $900 | $90.00 | 10% of $900 |
| $1,200 | $120.00 | 10% of $1,200 |
| $1,800 | $180.00 | 10% of $1,800 |
| $2,500 | $250.00 | 10% of $2,500 |
Work out your own figure with the late fee calculator →
The grace period in Tennessee
Tennessee requires a grace period of 5 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 6th.
Does the fee have to be in the lease?
The Tennessee statute does not say so in terms, but a late fee is a contract term like any other: if the lease does not create it, there is nothing to enforce. Write the amount and the day it applies into the lease.
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 Tennessee?
10% of the rent. On $1,200 rent that is $120.00. The rule is set by Tenn. Code Ann. § 66-28-201(d).
How many days late before a landlord can charge a fee in Tennessee?
5 days. A fee charged before the grace period runs out is not enforceable.
Does a Tennessee late fee have to be in the lease?
The statute does not say so expressly, but a late fee is a contract term: if it is not in the lease there is nothing to enforce. Always put it in writing.
Can a landlord charge a late fee every month the rent stays unpaid in Tennessee?
Tennessee 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 Tennessee?
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.