Late Fee Clause
in Your Lease
What it actually means, what Kentucky law says, what's specific to Louisville - and exactly what to do. In plain English.
Quick Summary - What You Need to Know
- No section we read in Chapter 383 sets a grace period or a maximum late fee.
- § 383.565 lets a lease set rent terms, and rent is due without demand or notice when agreed.
- The seven days in § 383.660(2) is time to pay after a termination notice, not a fee grace period.
- Under § 383.555(1)(a), a court may refuse to enforce, or limit, a lease provision that was unconscionable when made.
- Louisville's Chapter 151 prints the state's rent terms, and our record of the city code finds no late fee limit.
Understanding the Late Fee Clause
This page is for Louisville renters checking a late fee clause, either before signing or after a fee shows up on the ledger. Kentucky's landlord and tenant Act, which Louisville carries as Metro Code Chapter 151, lets a lease set rent terms, and no section we read sets a fee's amount or start day.
That puts the weight on the wording you sign: the day the fee starts, the amount, and whether it repeats.
What renters assume
Kentucky gives renters seven days before rent counts as late, so a late fee charged inside that week breaks the law.
What is actually true
The seven days in § 383.660(2) is time to pay after the landlord's written notice of nonpayment and intent to terminate. No section we read sets a wait before a late fee, which leaves the paragraph you signed as the text that answers it.
Louisville's bar is blank, one of 14 of the 25 rows with no figure: Los Angeles, Miami, Chicago, Phoenix, Atlanta, Columbus, Newark, Detroit, Minneapolis, Milwaukee, Kansas City, Indianapolis, Louisville, and Philadelphia, where the row reads no statute. The other 11 run from Boston at 30 days, Baltimore at 10 and Denver at 7, through New York City, Seattle, Nashville, Washington and Charlotte at 5, to Portland at 4, Las Vegas at 3 and Austin at 2.
Denver's 7 and Kentucky's seven days are different clocks. Denver's row reads a grace period; the seven days in § 383.660(2) is time to pay after a written notice before a landlord may end the rental agreement, so it has no place on a bar that measures grace.
Nor can the bar show § 383.555(1)(a), which lets a court refuse to enforce a provision that "was unconscionable when made".
Late Fee Clause Example - What the Wording Looks Like in Louisville, KY
The sample clause below is real lease language - a court quoted it word for word, and then ruled on it. What the judge decided is at the bottom of this block.
Find the equivalent paragraph in your own lease and read the two side by side. The wording will differ; the moving parts rarely do.
Tenant acknowledges either late payment of Rent or issuance of a returned check may cause Landlord to incur costs and expenses, the exact amount of which are extremely difficult and impractical to determine.
If any installment of Rent due from Tenant is not received by Landlord within 5 calendar days after the date due, or if a check is returned, Tenant shall pay to Landlord, respectively, an additional sum of $50.00 as a Late Charge…
Landlord and Tenant agree that these charges represent a fair and reasonable estimate of the costs Landlord may incur by reason of Tenant's late or NSF payment.
Quoted from the published opinion in Del Monte Properties and Investments, Inc. v. Dolan, 26 Cal.App.5th Supp. 20 (2018). Judicial opinions are not subject to copyright; the lease language is reproduced in limited part for commentary under 17 U.S.C. § 107.
What the 4 highlighted phrases mean
“incur costs and expenses, the exact amount of which are extremely”
This is the recital the California court tested, and the landlord lost on it: its own trial exhibit showed that its losses from late rent could be calculated. Kentucky's Act asks a different question. Under Ky. Rev. Stat. § 383.555(1)(a), a court that finds a provision “was unconscionable when made” may refuse to enforce it, enforce the rest of the agreement without it, or limit it “to avoid an unconscionable result”.
See the example
“installment of Rent due from Tenant is not received by Landlord within”
The lease writes its own window here. In the Kentucky sections our record read, no statute writes one: § 383.565(2) makes rent payable “without demand or notice at the time and place agreed upon by the parties”, and unless otherwise agreed at the beginning of each month. The days this paragraph allows before a fee are days the lease chose to give.
See the example
“returned, Tenant shall pay to Landlord,”
Here the clause turns into a fee, and our Kentucky record finds no cap on what follows. Our record of the Louisville code finds no city limit either: a text search for “late fee” returned a local food permit rule, an animal services citation rule and the animal services fee schedule, and a search for “late charge” returned none.
See the example
“Landlord may incur by reason of Tenant's late or NSF”
Kentucky does attach one statutory figure to late rent, and it sits outside the Act. § 383.010(1) provides that rent “shall bear six percent (6%) interest per annum from the time it is due”. The text of § 383.010 does not mention a late fee, and our record does not connect the two.
See the example
The clause was held void and unenforceable. Rent was $600 a month and the late fee $50 - about 8.3%. It failed both halves of California's liquidated-damages test: the landlord could not show its losses from late rent were hard to work out (its own trial exhibit showed they were calculable), and its witness admitted the $50 was simply set as a percentage of the rent, with no attempt to estimate the actual cost.
How this state's law treats this clause
One court, one lease, one state. That answer is not automatically yours, and your lease may be worded to land differently. Use this to know what to look for and what to ask - your state's tenant hotline or a local tenant attorney can answer it for your document.
Kentucky Law on Late Fee Clause
- Kentucky leaves the rent terms to the lease.
Read the law's words
Ky. Rev. Stat. § 383.565(1) provides that "A landlord and a tenant may include in a rental agreement terms and conditions not prohibited by KRS 383.505 to 383.715 or other rule of law, including rent, term of the agreement, and other provisions governing the rights and obligations of the parties." Section 383.565(2) adds that "Rent is payable without demand or notice at the time and place agreed upon by the parties", and, unless otherwise agreed, at the beginning of each month. Louisville Metro Code § 151.23 prints the same words. - The seven days in the Act is a pay-or-leave notice, not a fee grace period.
Read the law's words
Ky. Rev. Stat. § 383.660(2) provides that "If rent is unpaid when due and the tenant fails to pay rent within seven (7) days after written notice by the landlord of nonpayment and his intention to terminate the rental agreement if the rent is not paid within that period, the landlord may terminate the rental agreement." Section 383.695(3) separately lets a landlord end a tenancy begun when a written lease ended "at any time without notice" if the tenant fails to pay rent within ten days after it becomes due. Neither section mentions a late fee. - The check on an aggressive fee is a court's, not a number.
Read the law's words
Ky. Rev. Stat. § 383.555(1)(a) lets a court that finds a rental agreement or any provision of it "was unconscionable when made" refuse to enforce it, enforce the rest without it, or limit it "to avoid an unconscionable result", and § 383.545(16) defines unconscionable as willful conduct "so harsh and unjust as would be condemned or considered to be wrongful and would be shocking to the conscience of honest and fair-minded persons." Separately, Ky. Rev. Stat. § 383.010(1), outside the Act, provides that rent "shall bear six percent (6%) interest per annum from the time it is due"; the text of § 383.010 does not mention a late fee. - Where the Act applies is a local choice, and Louisville made it.
Read the law's words
Ky. Rev. Stat. § 383.500 authorizes cities, counties and urban-county governments to enact §§ 383.505 to 383.705 "in their entirety and without amendment", and § 383.195 refers to "those jurisdictions where the Uniform Residential Landlord and Tenant Act is not in effect." Louisville Metro Code Chapter 151 carries the history Jeff. Ord. 22-1984, adopted and effective July 24, 1984, and Lou. Metro Am. Ord. No. 134-2006, approved August 23, 2006. Under § 383.535 and § 151.08 the Act does not govern, among other arrangements, transient hotel or motel occupancy, occupancy by an employee whose right to occupy depends on that job, or occupancy by a condominium unit owner.
Sources include Ky. Rev. Stat. § 383.565(1); Ky. Rev. Stat. § 383.565(2); Ky. Rev. Stat. § 383.660(2); Ky. Rev. Stat. § 383.555(1); Ky. Rev. Stat. § 383.010(1); Ky. Rev. Stat. § 383.500; Ky. Rev. Stat. § 383.198; Louisville Metro Code § 151.23; Louisville Metro Code § 151.42(B); Louisville Metro Code § 151.21 - statutes change; verify the current text for your situation.
Step by step
How it plays out
- Rent due dateYour lease sets the feeNo section we read in Chapter 383 sets a grace period or a cap. Rent is payable without demand or notice when agreed (§ 383.565(2)).
- Rent unpaidInterest at 6% a year§ 383.010(1) says rent shall bear six percent (6%) interest per annum from the time it is due.
- Written notice givenSeven days to pay rentUnder § 383.660(2), if you fail to pay within seven (7) days after written notice, the landlord may end the rental agreement.
- In courtCourt can refuse harsh termsA court may refuse to enforce, or limit, a provision it finds was unconscionable when made (§ 383.555(1)(a)).
Count it for your dates
7 days: when does it end?
What it means: If the rent is still unpaid after this date, the landlord may terminate the rental agreement. Applies to A tenant whose rent is unpaid when due, under a rental agreement the Act governs; the section does not mention a late fee. If the tenancy began when a written lease ended, § 383.695(3) also lets the landlord end it without notice once rent is ten days past due (Ky. Rev. Stat. § 383.660(2); Louisville Metro Code § 151.42(B)). Calendar arithmetic only; check how the section counts days before you rely on a date.
Copy and send: As soon as a late fee appears on your ledger that you cannot match to your lease
Ask which clause a late fee comes from
Fill in the brackets and keep a copy of what you send.
Kentucky's landlord and tenant law is Ky. Rev. Stat. Chapter 383, which includes the Uniform Residential Landlord and Tenant Act. Our record of all 79 sections not marked repealed finds no grace period before a late fee and no cap on one.
- § 383.565(1) lets a lease include rent and other terms not prohibited by the Act or other rule of law. Under § 383.565(2), rent is payable "without demand or notice at the time and place agreed upon by the parties".
- § 383.660(2): if rent stays unpaid seven (7) days after the landlord's written notice of nonpayment and intent to terminate, the landlord may end the rental agreement. If your tenancy began when a written lease ended, § 383.695(3) lets the landlord end it without notice once rent is ten days past due. Neither section mentions a late fee.
- § 383.555(1)(a) lets a court refuse to enforce, or limit, a provision that "was unconscionable when made". § 383.545(16) sets a high bar: "so harsh and unjust" it would be "shocking to the conscience of honest and fair-minded persons."
- § 383.010(1), outside the Act, says rent "shall bear six percent (6%) interest per annum from the time it is due". Its text does not mention a late fee.
Check the current text of each section.
What's Specific to Louisville
Figures are the state rule, or the stronger city ordinance where one exists. Verify the current law for your own situation before relying on it.
Louisville Metro Code Chapter 151, which § 151.01 names the Uniform Residential Landlord and Tenant Act, prints the state's rent terms: § 151.23 matches § 383.565, and § 151.42(B) matches § 383.660(2). That is the state rule in city form, not a second layer.
Our record of the Louisville code finds no city grace period and no city limit on a residential late fee. Under § 383.535 and § 151.08, the Act does not govern some homes, such as a transient hotel or motel stay or job-linked housing.
No section we read in Chapter 383 sets either number. A clause that names both gives you something to check each charge against.
Our record of Kentucky and Louisville law finds no late fee cap. A ceiling written into the lease is a limit you can point to.
The seven days in § 383.660(2) is time to pay after a termination notice. Calling it a grace period mixes two different clocks.
A court can refuse or limit an unconscionable term under § 383.555(1)(a), but the test is demanding. Fixing it before signing is easier.
Sources
The law this guide relies on, and where to read it. Statutes change, so confirm the current text before you act on it.
- Ky. Rev. Stat. § 383.565(1); Ky. Rev. Stat. § 383.565(2); Ky. Rev. Stat. § 383.660(2); Ky. Rev. Stat. § 383.555(1); Ky. Rev. Stat. § 383.010(1); Ky. Rev. Stat. § 383.500; Ky. Rev. Stat. § 383.198; Louisville Metro Code § 151.23; Louisville Metro Code § 151.42(B); Louisville Metro Code § 151.21, read on apps.legislature.ky.gov. The Kentucky Legislative Research Commission's statute pages, which state that the Kentucky Revised Statutes include enactments through the 2026 Regular Session and that the database was last updated on October 3, 2026, print § 383.565 with the line Effective: July 13, 1984 and the history line Repealed and reenacted 1984 Ky. Acts ch. 176, sec. 13.
Red Flags to Watch Out For
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A fee on the day after rent is due
No section we read in Chapter 383 sets a waiting period. Settle the fee's start day before you sign, while the term is still open.
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A daily charge with no stated end
Our record of Kentucky and Louisville law finds no cap on a late fee. A fee that never stops is the clause most worth testing under § 383.555(1)(a).
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A seven-day notice that adds a fee
A § 383.660(2) notice is about ending the rental agreement for unpaid rent, and the section does not mention a late fee. Match any fee it demands to your lease.
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A city code section cited for a rent fee
Our record of Louisville's code finds the phrase "late fee" only in a food permit rule and animal services rules. None of them is a fee on rent.
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A balance that keeps rolling forward
A fee carried from month to month can make a paid month look unpaid. Ask which charge started the balance and which clause it comes from.
Your Rights as a Louisville Tenant
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Rent due on the terms agreed
§ 383.565(2) makes rent payable at the time and place the parties agreed, and unless otherwise agreed at the beginning of each month.
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Seven days after a written notice
Under § 383.660(2), the landlord may end the rental agreement if you fail to pay within seven (7) days after written notice of nonpayment and intent to terminate.
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A court can refuse an unconscionable term
§ 383.555(1)(a) lets a court that finds a provision "was unconscionable when made" refuse to enforce it, enforce the rest without it, or limit it.
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Interest on late rent set by statute
§ 383.010(1) sets interest on unpaid rent at six percent (6%) a year from the time it is due. Its text does not mention a late fee.
What To Do - Step by Step
Read the fee paragraph word for word
Write down when the fee attaches, how much it is, and whether it repeats. That paragraph is the text to check each charge against.
Separate the fee from any notice
If a letter arrived, check whether it is a § 383.660(2) notice of nonpayment and intent to terminate. Its seven days are time to pay the rent.
Put every charge on one dated list
List each payment and each charge with its date, then mark which entries are rent and which are fees.
Weigh the fee against § 383.555
Note the fee's size against your rent and how it was explained at signing. A court decides whether a term was unconscionable when made.
Put your position in writing
Name the dates, the amounts and the lease clause, and ask which clause each fee comes from. Keep the written thread instead of calling.
Get advice while the notice runs
Kentucky legal aid offices and tenant help lines can look at the lease and the ledger. Bring any notice with the date it arrived.
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Frequently Asked Questions
Late Fee rules near Kentucky
The same clause in the nearest states we cover.
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