Tennessee Late Rent Fee Laws: Limits, Grace Periods, and Penalties
What Tennessee landlords can charge when rent is late, how long they must wait, and what an illegal fee costs. Last reviewed 2026-08-16.
How much can a landlord charge in Tennessee?
In counties covered by the Uniform Residential Landlord and Tenant Act, Tenn. Code Ann. § 66-28-201(d) caps any charge or fee "however described" for late payment of rent at 10% of the amount of rent past due. The cap runs against the past-due balance, not the full monthly rent, so a partial payment shrinks the maximum lawful fee. In counties the URLTA does not reach, there is no statutory cap and the lease plus ordinary contract law controls. A fee above the cap is not merely reduced; it violates the statute and will not be enforced.
How late does rent have to be?
URLTA counties get a five-day grace period that begins on the rent due date, with the due date counted as day one, so no fee may be charged until the sixth day. If the fifth day falls on a Sunday or a legal holiday as defined in § 15-1-101, no late fee may be charged at all provided rent is paid the next business day.
Does the fee have to be in the lease?
The 10% cap applies regardless of what the lease says, but a late fee still has to be a written term of the rental agreement to be collectible, since § 66-28-201(a) is what allows the parties to include rent and fee terms. A lease term waiving a tenant's rights under the chapter is void.
What happens if you charge too much?
Tennessee sets no separate fine, but a fee exceeding 10% of past-due rent violates § 66-28-201(d) and a court will not enforce it, and § 66-28-201(a) voids any lease term purporting to waive tenant rights under the chapter. The overcharge cannot be added to the amount claimed in a detainer warrant.
Returned payment fees
Tenn. Code Ann. § 47-29-102 lets the payee of a dishonored check assess a handling charge of up to $30. That charge is separate from the 10% late fee cap, so a bounced rent check can generate both a lawful late fee and the handling charge.
Recent changes to the law
Tenn. Code Ann. § 66-28-201 was not amended in 2024 through 2026. The 10% cap, the five-day grace period with its Sunday and holiday exception, and the 2010-census applicability test in § 66-28-102 all remain as written.
What Tennessee landlords get wrong
The applicability rule is the real trap. Tenn. Code Ann. § 66-28-102(a) applies the URLTA only in counties with a population over 75,000 "according to the 2010 federal census," and that list is frozen at 2010, so a county that crossed 75,000 in the 2020 count is still outside the Act. It reaches the state's larger counties, including Shelby (Memphis), Davidson (Nashville), Knox (Knoxville), and Hamilton (Chattanooga), but confirm your own county against the 2010 count before relying on the cap. Outside those counties neither the 10% cap nor the five-day grace period applies; only the lease and common law do. Many national guides state the 10% cap as a statewide Tennessee rule, which is wrong for rural counties.
The law itself
Frequently asked questions
What is the maximum late fee in Tennessee?
In counties covered by the Uniform Residential Landlord and Tenant Act, Tenn. Code Ann. § 66-28-201(d) caps any late charge at 10% of the rent past due, not 10% of the full monthly rent. If a tenant has paid part of the rent, the cap applies to the remaining balance. Counties outside the Act have no statutory cap.
How many days late can rent be in Tennessee before a fee?
In URLTA counties, five. The grace period starts on the due date, and the due date counts as day one, so a fee cannot be charged until the sixth day. If the fifth day lands on a Sunday or a legal holiday, no late fee may be charged at all as long as rent is paid the next business day.
Does Tennessee's 10% late fee cap apply everywhere in the state?
No. Tenn. Code Ann. § 66-28-102(a) applies the Act only in counties with more than 75,000 people according to the 2010 federal census, and that list is frozen, so a county that passed 75,000 in the 2020 census is still not covered. About 17 counties qualify. Elsewhere, the lease and common law control late fees.
Can a Tennessee landlord charge a late fee and a bounced check fee?
Yes, they are separate charges. The 10% cap in § 66-28-201(d) covers charges for late payment of rent, while Tenn. Code Ann. § 47-29-102 separately allows the payee of a dishonored check to assess a handling charge of up to $30. Both should be stated in the lease to be collectible.
Keep reading
Charging the wrong late fee can cost you more than the rent.
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Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.