The safest self storage late fee is the greater of $20 or 20% of one month's rent, written into the signed lease and charged only after your state's grace period. Many state statutes treat that amount as reasonable, but not all do. This guide is general information, not legal advice, so have your attorney review your lease before you rely on any number here.
Use the late fee calculator to test your rents against your state's rule.
The three decisions
- How much. A flat dollar fee, a percentage of rent, or the greater of the two.
- When. The grace period before the fee applies.
- How often. Once per month or per period of nonpayment.
Each one has a legal ceiling in some states and none in others.
What states say about the amount
| State | Amount rule | Source |
|---|---|---|
| Alabama | Greater of $20 or 20% of monthly rent is reasonable | Ala. Code 8-15-40 et seq. |
| Arkansas | Not more than the greater of $30 or 20% of monthly rent | Ark. Code 18-16-401 et seq. |
| Arizona | Greater of $10 or 20% of monthly rent may be computed as reasonable | A.R.S. 33-1701 et seq. |
| Florida | Greater of $20 or 20% is deemed reasonable | Fla. Stat. 83.808 |
| Georgia | No more than the greater of $20 or 20% of monthly rent | O.C.G.A. 10-4-217 |
| Pennsylvania | Greater of $20 or 20% is reasonable | 12 Pa.C.S. 5605 |
| New Jersey | Up to the greater of $20 or 18% of monthly rent | N.J. Self-Service Storage Facility Act |
| Colorado | Greater of $20 or 20% is presumed reasonable | C.R.S. 38-21.5-101.5 |
| Texas | No late fee provision in chapter 59. The lease controls. | Prop. Code ch. 59 |
Other states with the greater-of-$20-or-20% rule in our research include Delaware, Idaho, Iowa, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Montana, Nevada, Oklahoma, Oregon, Tennessee, Utah, Vermont, Washington, Wisconsin and West Virginia. Look up your state on the lien laws by state page.
What states say about timing
| State | Timing rule |
|---|---|
| Illinois | Fee only after rent is unpaid 5 days past the due date |
| Kentucky | Not before rent is unpaid 5 days after the due date |
| Ohio | No fee if rent is paid in full by the third day after the due date |
| Maine | No fee if rent is paid by the third day |
| New Hampshire | No fee if paid in full by the fifth day |
| Pennsylvania | No fee if paid in full by the fifth day, so the earliest fee is day 6 |
| Vermont | No fee if paid in full within 5 days |
| Wisconsin | Fee for each month rent is not paid by 5 days after due |
Sources: 770 ILCS 95, Ohio ch. 5322, 12 Pa.C.S. 5605, and the state pages linked above.
Worked examples
Say your facility has 120 units. These numbers are examples, not predictions.
Example 1: Alabama. A unit rents at $95. Twenty percent is $19. The greater of $20 or $19 is $20, so $20 is the reasonable fee. A $180 unit gives 20% = $36, so $36.
Example 2: Arkansas. A $120 unit has 20% = $24. The floor is $30, so up to $30 is allowed.
Example 3: New Jersey. A $200 unit has 18% = $36, greater than $20, so up to $36.
Example 4: Revenue. If 10 of your 120 units pay late in a month and your fee is $20, that is $200 in fees. At 12 months, $2,400. The point of a fee is not revenue. It is a nudge to pay on time. A $20 fee that gets you paid 3 days sooner is worth more than the $20.
Example 5: Pennsylvania timing. Rent is due the 1st. A tenant pays on the 5th, so no fee. A tenant pays on the 6th, and a $20 fee applies if the lease says so.
How to choose your fee
- Start with your state's rule. If you have a ceiling, stay at or below it.
- Pick a simple number. The greater of $20 or 20% is common and easy to explain.
- Choose a grace period. At least your state's minimum. Many owners use 5 days.
- Make it once per period. Avoid daily fees.
- Write it in the lease. Put the amount and timing in the agreement or an addendum.
- Apply it the same way every time. Waive fees as a courtesy only if you do it fairly.
- Keep your records. Record each fee in the ledger.
Example lease wording
Template only, general information, not legal advice.
If rent is not received by [GRACE DATE], Tenant will pay a late fee of the greater of $[AMOUNT] or [PERCENT]% of the monthly rent, once per month. The late fee is a reasonable charge for the cost of late collection and is secured by Owner's lien.
Adjust to your state. The late notice template shows how to present the fee to the tenant.
Mistakes to avoid
- A fee not in the lease.
- A fee above your state's number.
- Charging before the grace period ends.
- Adding a new fee type without notice to existing tenants.
- Adding fees on top of fees.
- Including unlawful fees in a lien notice.
- Not recording waivers, which makes later enforcement look uneven.
Late fees and autopay
Most late fees come from forgotten payments. Autopay cuts that. Stitch autopay charges cards or bank accounts on the due date, and the ledger shows each fee. Late fees that are written into your lease and charged on a fixed schedule are easier to defend.
If a fee does not get a tenant to pay, the next step is the lien process. See the auction process guide. This guide is general information, not legal advice. Review your lease and fee schedule with an attorney.