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    California Late Fee Law

    California sets no numeric late-fee cap, but a residential late fee is enforceable only if it is a reasonable estimate of the landlord's actual costs from late payment that would be hard to calculate, so keep fees modest and document how you set them (Cal. Civ. Code § 1671(d); Orozco v. Casimiro (2004) 121 Cal.App.4th Supp. 7). State law sets no grace period, so any grace period comes from the lease.

    Last verified: · Researched and cited by MakeLease · not yet attorney-reviewed

    California late fee law at a glance

    Late-fee capNo fixed statutory cap. A pre-set residential late fee is liquidated damages and is void unless actual damages would be impracticable or extremely difficult to fix and the amount is a reasonable estimate of the landlord's actual damages from late payment (Civ. Code § 1671(d); Orozco v. Casimiro (2004) 121 Cal.App.4th Supp. 7).Cal. Civ. Code § 1671(c)(2), (d)
    Grace periodNo state grace periodCal. Civ. Code, Part 4, Title 5, Ch. 2 (Hiring of Real Property) — no grace-period provision
    Notice before filing for unpaid rent3 business days (3-day notice to pay rent or quit)Cal. Code Civ. Proc. § 1161(2)

    Notice before filing for unpaid rent

    • In effect since .
    • Before : 3 calendar days, including weekends and holidays.

    What California law says

    Is there a limit on late fees in California?

    California sets no numeric late-fee cap, but a residential late fee is enforceable only if it is a reasonable estimate of the landlord's actual costs from late payment that would be hard to calculate, so keep fees modest and document how you set them (Cal. Civ. Code § 1671(d); Orozco v. Casimiro (2004) 121 Cal.App.4th Supp. 7) (Cal. Civ. Code § 1671(c)(2), (d)).

    Does California require a grace period before a late fee?

    California law does not require a grace period before a late fee can be charged, though leases commonly allow until the 5th (Cal. Civ. Code §§ 1940–1954.535 contain no grace-period rule) (Cal. Civ. Code, Part 4, Title 5, Ch. 2 (Hiring of Real Property) — no grace-period provision).

    How much notice must a California landlord give for unpaid rent?

    Before filing for unpaid rent, serve a written 3-day notice to pay rent or quit that excludes Saturdays, Sundays and judicial holidays, states the exact rent owed (no late fees) and who/where/how to pay (Cal. Code Civ. Proc. § 1161(2)).

    How California compares

    31 of 51 verified jurisdictions set no statutory cap. 14 require a grace period.

    None of California's 3 neighbors follows the same rule.

    Late-fee cap · grace periodStates
    Reasonableness (case law) · noneCalifornia
    Statutory standard, no fixed amount · noneArizona
    Statutory formula · 3 daysNevada
    Statutory formula · 4 daysOregon

    Local rules in California

    Many California cities and counties add stricter rules: local rent control/stabilization and just-cause ordinances (e.g., Los Angeles RSO, San Francisco, Oakland, Berkeley, San Jose, Santa Monica, West Hollywood, unincorporated Los Angeles County), extra notice content and filing requirements, relocation payments, caps on late fees under some rent ordinances, and security-deposit interest (e.g., San Francisco, Berkeley, Santa Monica). The statewide Tenant Protection Act (Civ. Code §§ 1946.2, 1947.12) yields to qualifying stricter local ordinances. Check local law before using statewide numbers.

    Other California rules

    Security deposit limit1 month's rent (with exceptions)Cal. Civ. Code § 1950.5(b), (c)
    Deposit return deadline21 days after move-outCal. Civ. Code § 1950.5(h)(1), (h)(3)
    Entry notice24 hours' noticeCal. Civ. Code § 1954
    Rent-increase notice30 days (90 days if the increase, alone or combined with other increases in the prior 12 months, exceeds 10% of the lowest rent charged in that period; add 5 days if served by mail (CCP § 1013))Cal. Civ. Code § 827(b)
    Month-to-month termination30 days (either side)Cal. Civ. Code § 1946.1(b)–(d), Cal. Civ. Code § 1946.2(a)

    Read the California law

    Put the late fee and grace period in writing

    Create a California lease

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