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
Amenity fee · Application screening fee · Credit card or online payment fee · Fee for paying by check · Fee for serving a notice · Non-refundable move-in or admin fee · Non-refundable pet fee · Parking fee · Pet rent · Rent reporting fee · Returned check fee · Security deposit · Storage fee · Utility charge
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
Not legal advice. Confirm your lease with a California attorney.