Late Fee

A charge applied when rent is not paid by the deadline. In Tennessee, a late fee cannot be charged until after a 5-day grace period (TCA 66-28-201). The fee must be specified in the lease and should be reasonable. Most Memphis PMs charge 5-10% of rent or a flat $50-$100. A $1,200 rent with a 10% late fee means $120 on day six.