California: fees charged at move-in count toward the deposit limit and must be refundable · Check a fee

Is there a limit on late fees in California?

For residential rentals in California, under the Civil Code as amended by AB 12, SB 611, AB 2493 and AB 2801.

Last reviewed November 1, 2026 against California Civil Code 1950.5 and 1950.6 and the sources below · How we check facts

No fixed cap, but it must be reasonable

Allowed, but state law limits how and how much.

What the law says

No dollar cap in state law, but a late fee must be a reasonable estimate of the landlord's actual losses from late payment. Courts have voided late fees that were penalties (Civil Code 1671; Orozco v. Casimiro, 2004).

How to set a late fee

A late fee is treated as liquidated damages. It is valid only if actual damages would be hard to fix and the amount is a reasonable estimate of what late payment costs you, such as interest and the time spent collecting. In Orozco v. Casimiro (2004), a $50 late fee on $550 rent was struck down because the landlord could not show it matched real losses. Keep a note of how you set the number.

How to write it in the lease

Example wording:

Late charge: $35 if rent is not received by the 5th. Both parties agree this is a reasonable estimate of the costs of late payment to the landlord, which are hard to fix in advance.

For renters

If a charge goes beyond these limits, ask the landlord in writing to correct it and keep a copy. California renter guide.

Check any other charge: California fee checker.

Other California fees

Frequently asked questions

Is there a limit on late fees in California?

No fixed cap, but it must be reasonable. No dollar cap in state law, but a late fee must be a reasonable estimate of the landlord's actual losses from late payment. Courts have voided late fees that were penalties (Civil Code 1671; Orozco v. Casimiro, 2004).

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

Yes. Put every charge a tenant may pay in the written lease, with the amount and whether it is required or optional.

Related

Sources: California Civil Code 1950.5 (security deposits) · California Civil Code 1950.6 (application screening fees) · SB 611 (2024): notice fees, check fees, service member deposits
Not legal advice. Confirm your lease with a California attorney.