Tips & Guides / Leases

What Is a Rent Grace Period, and How Does It Work?

By Bri Hand | Jan 25, 2022

When you’re in a new city living your best life, paying rent can sometimes fall by the wayside. Even if you have your finances managed to a T, that dreaded due date can creep up on you. 

Wait, is it the first of the month already? What happens if the rent payment is a few days late? 

The good news is that many landlords have a grace period for rent, or an amount of time after the official due date when a tenant can still pay rent without incurring penalties or fees. This grace period is often listed on the rental agreement. 

To cover the ins and outs of rent grace periods, let’s dive into a few of the most common questions and concerns tenants have, including: 

  • Does every apartment come with a grace period?
  • How long is the typical rent grace period?
  • How much is the typical late rent fee?
  • Consequences for a late rent payment
  • Benefits of on-time rental payment

Let’s get started!

Does every apartment come with a grace period?

When you rent an apartment, you’ll have a date on which rent is due. This is when property managers expect to receive the full amount of the rent from their tenants, and they will often charge a late fee if you don’t make it happen. 

The grace period is the amount of time after the rent collection due date passes before the late fee kicks in. 

Grace periods are a common occurrence, but landlords are not always required to provide one to their tenants as part of their rental agreement. While some states require at least a minimum grace period of a few days to give tenants time for their checks to clear, others leave it up to each landlord to decide when to charge a late payment fee.

As a tenant, it’s your responsibility to check (and double-check!) your contract or lease agreement for whether there is a grace period and what fees you may incur if you are late on your rental payment. You’ll also want to know whether your landlord can initiate an eviction based on too many late payments.

How long is the typical rent grace period?

When identifying your home’s rent grace period, the first thing to do is to check your state laws to see if there is a minimum required. New York, for example, has a statewide grace period of five days, whereas in Texas, it’s two days.

However, even in states where landlords decide their grace period lengths, it’s typically no more than a few days. The most common amount of time is three to five days before fees are incurred. Landlords are able to charge tenants late fees as soon as the grace period ends.

For example, assuming that rent is due on the first of the month, some possible scenarios for late charges include:

  • There is no grace period, and you incur a late fee if you pay on the second. 
  • There is a three-day grace period, and you incur a late fee if you pay on the fourth. 
  • There is a five-day grace period, and you incur a late fee if you pay on the sixth.

How to know when you’ve paid 

It can be confusing to know what it means to have paid your rent! This varies from apartment to apartment and will be defined in your lease agreement, so don’t forget to read the fine print. Landlords might use one of the following standards to determine when their tenants’ rent is considered paid: 

  • Initiated: This is the date when you scheduled the rental payment or mailed the check. 
  • Withdrawn: If you pay through an online system, there may be a lag between when you initiated the payment and when money was withdrawn from your bank account. Some landlords will go with the date of withdrawal. 
  • Received: This is when the landlord receives your payment in their account or when they have your check in hand. 
  • Cleared: This means that the payment has been successfully processed and fully deposited. 

How much is the typical late fee for rent?

If you haven’t gotten your rent in by the end of the due date, or if you’ve only paid part of it, your landlord will most likely charge a late fee. They may choose to do so to:

  • Compensate for the financial inconvenience
  • Make up for the additional required communication
  • Dissuade tenants from paying late again

A standard late fee amount is 5% of your monthly rent. For example, if your rent is $1,500, then your late fee would be $75. Some landlords may also go with a flat late fee, typically between $50 and $100.

Some states and cities have limits on late fees, so be sure to check these out. It’s also important to know that a late fee has to be written in the rental agreement beforehand for it to be valid. If you paid your rent after the due date and no penalty was ever specified in your lease, the landlord is unable to charge you a late fee. This is why it’s very important to read through the exact terms of your lease before signing so you’ll understand what is and isn’t agreed upon beforehand within your lease agreement.

Consequences for late rent payments

Beyond just the fee, a late payment can come back to bite you in various ways—especially if it becomes a habit. Let’s dive into what can happen.

Unhappy landlord

While you might not be best buddies with your landlord, maintaining a good, friendly relationship can bring certain benefits throughout the duration of your rental. They may be more lenient and accommodating, for example, if your friend decides to crash at your place for longer than expected or if you need your clogged sink drain fixed—pronto

While the strength of your landlord-tenant relationship is not exactly quantifiable, paying rent late may put your landlord in a tricky financial position and create tension between the two of you. The day may come when you need your landlord’s help, and having a strong foundational relationship can be the difference between a new shower head installed day-of and a long back-and-forth with an “I’ll get back to you on this” response.

Additionally, when it comes time for you to find a new rental, your landlord could use your history against you when writing an apartment rental reference letter. In more extreme circumstances, if late payments occur regularly or start to stack up, you may even face eviction.

Small fees add up

If you’re repeatedly paying your rent late, you’ll have to shell out a little extra each month, and those penalties add up to create an additional financial burden for you. This is an easy fix if you’re just forgetful or careless. But it’s added stress if the reason you’re paying late is that you’re tight on cash when rent is due. 

In either case, over the long term, you’re losing more than you’re gaining. 

Say goodbye to that lease

A more sneaky inconvenience is that your landlord might not offer to renew your lease when the time comes. Even if they do, your landlord will remember all those times they had to chase after you and may not offer you the best rental terms.

If you love your rental property, you want to be able to stay without any additional hassle. 

On the other hand, if you’re sick and tired of staying in one rental, or if you want more flexibility in your living situation, there are other short-term living options to consider.

Taking the credit hit

Not all landlords report late rent to credit bureaus, but some do. This could be the case if:

  • Your landlord is a member of a credit reporting bureau.
  • Your landlord uses a rent payment system that automatically sends reports.
  • You rent from a corporate entity such as a property management company.
  • You are extremely and consistently late with payments. 

That being said, it’s not common for late rent to affect your credit score. You can always ask your landlord how they handle the issue if it were to come up. One exception, however, is if you owe a lot of rent, and it’s handed over to a collections agency, in which case the filing will lower your score.

Benefits of on-time rent payments

On the flip side, paying your rent on time can mean good things to come. 

If your landlord is one to report to credit bureaus, paying your rent reliably each month can contribute to a positive renting history. It can also be incorporated into your credit report and give you that needed boost when you’re getting ready to make a big purchase.

Some other important benefits include:

  • No late fees: Those $50 (or more) payments add up over time, and you don’t want to have to pay extra each month. That’s money you could put toward exploring the cozy kitty cafe on your street or getting drinks with the new friends you’ve made.
  • No stress: Paying your rent late isn’t only upsetting for your landlord. It can also cause you undue stress. You might find yourself scrambling to put together rent for the month, which takes attention away from more important things, like enjoying the new city you’re in.
  • Better organization: Paying rent on time and having a consistent schedule means fewer logistics to worry about. Pencil your rent payment into your calendar, or set it to auto-pay, and spend your energy and thoughts on everything else your location has to offer. That’s why you’re there in the first place, right? 

Flexible leases without any surprises

We know transferring apartments—or even cities—can be both exciting and a hassle. And as you find your footing, the last thing you want to worry about is committing to a long-term lease, especially one with miles-long fine print and hidden fees lurking in every other paragraph. 

Here at Landing, we have plenty of flexible, short-term, month-to-month options to choose from. Take a look at our fully furnished apartments, or contact us to learn more about the Landing network today!

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About the author

Bri Hand

Bri Hand is Landing's Content Marketing Manager. She currently lives in Salem, Massachusetts, with her partner and dog, Arlo, but relishes any opportunity she can to travel so she can try new foods, see gorgeous sights, and daydream about living somewhere new after visiting there for less than 24 hours.