Texas Late Fee Law
When a late fee may be collected
Under Tex. Prop. Code § 92.019(a), a landlord may not collect a late fee for failing to pay any portion of the tenant's rent unless three conditions are all met: notice of the fee is included in a written lease, the fee is reasonable, and any portion of the tenant's rent has remained unpaid two full days after the date the rent was originally due.
Statute text
A landlord may not collect from a tenant a late fee for failing to pay any portion of the tenant's rent unless:
notice of the fee is included in a written lease;
the fee is reasonable; and
any portion of the tenant's rent has remained unpaid two full days after the date the rent was originally due.
What the statute considers a reasonable fee
Under Tex. Prop. Code § 92.019(a-1)(1), a late fee is considered reasonable if it is not more than 12 percent of the rent for the rental period for a dwelling in a structure that contains not more than four dwelling units, or not more than 10 percent for a dwelling in a structure that contains more than four dwelling units. Under § 92.019(a-1)(2), a fee above those amounts is also considered reasonable if it is not more than uncertain damages to the landlord related to the late payment of rent, including direct or indirect expenses, direct or indirect costs, or overhead associated with the collection of late payment.
Statute text
For purposes of this section, a late fee is considered reasonable if:
12 percent of the amount of rent for the rental period under the lease for a dwelling located in a structure that contains not more than four dwelling units; or
10 percent of the amount of rent for the rental period under the lease for a dwelling located in a structure that contains more than four dwelling units; or
the late fee is more than the applicable amount under Subdivision (1), but not more than uncertain damages to the landlord related to the late payment of rent, including direct or indirect expenses, direct or indirect costs, or overhead associated with the collection of late payment.
Initial and daily fees
Under Tex. Prop. Code § 92.019(b), a late fee may include an initial fee and a daily fee for each day any portion of the tenant's rent continues to remain unpaid, and the combined fees are considered a single late fee for purposes of the section.
Statute text
A late fee under this section may include an initial fee and a daily fee for each day any portion of the tenant's rent continues to remain unpaid, and the combined fees are considered a single late fee for purposes of this section.
Lease terms that waive the section
Under Tex. Prop. Code § 92.019(d), a provision of a lease that purports to waive a right or exempt a party from a liability or duty under the section is void.
Statute text
A provision of a lease that purports to waive a right or exempt a party from a liability or duty under this section is void.
Penalties
Texas law sets consequences for landlords who don't follow these rules. Read them in the statute: Tex. Prop. Code § 92.019(c).
City and county rules
This page covers statewide law only. Some cities and counties have their own late fee rules, and this page does not list them. Check with your city or county.
Official sources
About this page
This page is general information about Texas law from Deedhold LLC, which operates DeedVault. It is not legal advice, it is not a substitute for the advice of an attorney, and reading it does not create an attorney-client relationship. Deedhold LLC is not a law firm and does not practice law.
We wrote each summary from the official statute text linked beside it and last checked the page on November 1, 2026. The statute, not this summary, is the law. Statutes are amended, courts interpret them, and cities, counties and lease terms can add requirements this page does not cover. We may not learn of a change right away, and we remove any page we have not re-checked within 7 months.
This page is provided as is, without any warranty that it is complete, current, or right for your situation. Do not rely on it alone for a decision about a late fee, a tenant, or a dispute. Check the official sources linked on this page, or consult an attorney licensed in Texas.
Found an error? Email [email protected]. We will review the page and take it down while we do if needed.