A Texas late fee is lawful only if three things are true: the fee is in a written lease, it is reasonable, and “any portion of the tenant’s rent has remained unpaid two full days after the date the rent was originally due” (Property Code §92.019(a)). The statute defines reasonable: a fee of not more than 12% of the rent for the period, for a dwelling in a structure of four units or fewer, or 10% for more than four units, is reasonable by definition; a higher fee must be justified by the landlord’s uncertain damages from late payment (§92.019(a-1)). A fee may combine an initial charge and a daily charge, counted together as one fee (§92.019(b)). A landlord who collects a fee in violation owes the tenant $100, three times the fee, and attorney’s fees.
The clause, line by line
- Due date: the original due date, because §92.019 counts from it.
- Grace: “No late fee is charged unless any portion of the rent remains unpaid two full days after the due date.” Do not shorten it; you may lengthen it.
- Amount: an initial fee and, if you want one, a daily fee, with the combined total kept within 12% or 10% of the period’s rent — say which cap applies to this dwelling.
- Partial payments: a fee applies when “any portion” is unpaid; say whether a partial payment stops the daily fee (it need not).
- Statement on request: under §92.0191 the tenant may ask in writing whether a late fee is owed and how much; the landlord must answer by any established means.
- Order of application: state whether payments apply first to rent or to fees; the choice affects the next month’s notice to pay rent or vacate.
A worked example
| Day | Status | Fee |
|---|---|---|
| 1st | Rent due | — |
| 2nd, 3rd | Two full days of grace | $0 |
| 4th | Rent unpaid; initial fee applies | $75 |
| 5th–10th | Daily fee $15 × 6 days | $90 |
| 11th onwards | Cap reached at $180 combined; no further fee this period | $15 → total $180 |
What voids the fee
No written clause; a fee charged on day two or three; a total above the cap without documented uncertain damages; and a fee on a “rent” item the lease never defined as rent. The safe clause is short, inside the cap, and copied into the rent ledger so the tenant’s statement under §92.0191 matches the file.
Frequently asked questions
How much can a Texas late fee be?
A fee is reasonable by definition if it does not exceed 12% of the period’s rent for a structure of four units or fewer, or 10% for more than four units; more requires proof of uncertain damages (Property Code §92.019).
When can the fee be charged?
Only after any portion of the rent has remained unpaid two full days after the original due date, and only if a written lease provides for the fee (Property Code §92.019).
Can a late fee include a daily charge?
Yes — an initial fee plus a daily fee for each day rent remains unpaid, treated together as one fee for the cap (Property Code §92.019(b)).
Sources
Rules change and the right answer can depend on the home, the city, the lease and the timing. These are the official pages this guide relies on; check them before signing, charging a fee, sending a notice or making a legal decision.
- Texas Property Code, Chapter 92 — Residential Tenancies ↗
- Texas State Law Library — Landlord/Tenant Law research guide ↗
- Texas State Law Library — Rent ↗
General information for U.S. landlords, with a Texas focus. This guide is not legal, tax or accounting advice. Consult a qualified professional for your situation. Written by the rentalfreelease.com Editorial Team; last reviewed September 19, 2026.