Late Fee Addendum to Residential Lease Agreement

State of Alabama

[// GUIDANCE: This template is drafted to comply with the Alabama Uniform Residential Landlord and Tenant Act, Ala. Code §§ 35-9A-101 et seq., and incorporates best-practice defensive drafting techniques. All bracketed items must be customized prior to execution.]

Table of Contents

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

1.1 Title and Parties

This Late Fee Addendum to Residential Lease Agreement (this “Addendum”) is entered into by and between [LANDLORD LEGAL NAME] (“Landlord”) and [TENANT LEGAL NAME(S)] (“Tenant,” and together with Landlord, the “Parties”).

1.2 Recitals

A. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [ORIGINAL LEASE DATE] (the “Lease”) covering the premises commonly known as [PREMISES ADDRESS] (the “Premises”).
B. The Parties desire to supplement the Lease to establish late-payment terms consistent with Alabama law.
C. In consideration of the mutual covenants herein and other good and valuable consideration, the sufficiency of which is acknowledged, the Parties agree as follows.

1.3 Effective Date; Governing Jurisdiction

This Addendum is effective as of [EFFECTIVE DATE] (the “Effective Date”) and is governed by the laws of the State of Alabama, including the Alabama Uniform Residential Landlord and Tenant Act, Ala. Code §§ 35-9A-101 et seq.

2. DEFINITIONS

For purposes of this Addendum capitalized terms have the meanings set forth below. Any capitalized term used but not defined herein has the meaning assigned in the Lease.

“Base Rent” means the monthly rent payable under the Lease, exclusive of any other charges.
“Due Date” means the [DAY] day of each calendar month on which Base Rent is due.
“Grace Period” means the period commencing on the Due Date and expiring at 11:59 p.m. on the [NUMBER]ᵗʰ day thereafter.
“Late Fee” means the amount assessed under Section 3.1 upon Tenant’s failure to pay Base Rent within the Grace Period.

3. OPERATIVE PROVISIONS

3.1 Late Fee Assessment

If Tenant fails to remit the full amount of Base Rent on or before expiration of the Grace Period, Tenant shall owe Landlord a Late Fee equal to the lesser of:
a. $[FIXED DOLLAR AMOUNT]; or
b. [PERCENT]% of the unpaid Base Rent,
provided that such Late Fee is a reasonable estimate of Landlord’s administrative costs and is not imposed as a penalty. Ala. Code § 35-9A-201(d).

[// GUIDANCE: Alabama imposes no explicit statutory cap but requires reasonableness. Many practitioners limit Late Fees to 10% of monthly rent or a flat $100—whichever is less—to avoid claims of unenforceable penalty.]

3.2 One-Time Charge; No Interest

a. The Late Fee is a single, non-recurring charge for the applicable month.
b. No interest accrues on unpaid Late Fees; however, failure to pay a Late Fee constitutes a separate rental obligation.

3.3 Payment Deadline

Tenant shall pay any Late Fee concurrently with the next monthly Base Rent or within [X] days after written demand, whichever is earlier.

3.4 Application of Payments

Payments are applied in the following order: (i) accrued Late Fees; (ii) past-due Base Rent; (iii) current Base Rent; (iv) any other amounts due under the Lease.

3.5 Notice

Landlord shall provide written notice of any unpaid Base Rent and assessed Late Fee in accordance with Ala. Code § 35-9A-421(b) (seven-day cure period prior to termination). Notice must specify: (i) the amount past due, (ii) the Late Fee imposed, and (iii) the deadline to cure.

4. REPRESENTATIONS & WARRANTIES

4.1 Mutual Authority. Each Party represents that it has full right, power, and authority to enter into and perform this Addendum.
4.2 No Conflict. Each Party represents that execution and performance of this Addendum do not violate any other agreement binding upon it.
4.3 Accuracy of Information. Each Party warrants that all information provided herein is materially accurate as of the Effective Date.

All representations and warranties survive termination of this Addendum to the extent necessary to enforce unpaid amounts.

5. COVENANTS & RESTRICTIONS

5.1 Tenant Covenants
a. Tenant shall timely pay all Late Fees when due.
b. Tenant shall not deduct or offset Late Fees against future rent without Landlord’s written consent.

5.2 Landlord Covenants
Landlord shall not assess any additional charge for late payment of rent beyond the Late Fee described herein unless specifically authorized by a further written agreement with Tenant.

6. DEFAULT & REMEDIES

6.1 Event of Default
Tenant’s failure to pay (i) Base Rent within the Grace Period and/or (ii) any Late Fee within the period specified in Section 3.3 constitutes a material default under the Lease and this Addendum.

6.2 Notice & Cure
Upon default, Landlord shall deliver written notice consistent with Ala. Code § 35-9A-421(b), affording Tenant seven (7) calendar days to cure.

6.3 Graduated Remedies
a. If the default remains uncured after notice, Landlord may pursue eviction and possession of the Premises as authorized by Alabama law.
b. Landlord may recover all Late Fees, court costs, and, where permitted by statute, reasonable attorney’s fees incurred in enforcement.

7. RISK ALLOCATION

7.1 Indemnification
[Intentionally Omitted – see Metadata (“not_applicable”).]

7.2 Limitation of Liability
Nothing contained herein limits either Party’s liability beyond statutory limits or restricts any remedies available under the Alabama Uniform Residential Landlord and Tenant Act.

7.3 Force Majeure
Neither Party is liable for failure to perform obligations (other than payment obligations) when performance is impossible due to events beyond that Party’s reasonable control, provided written notice is given within a commercially reasonable time.

8. DISPUTE RESOLUTION

8.1 Governing Law
This Addendum and the Lease are governed by the laws of the State of Alabama without regard to conflict-of-law principles.

8.2 Forum Selection
The Parties submit to the exclusive jurisdiction of the state housing court or other court of competent jurisdiction situated in [COUNTY], Alabama.

8.3 Arbitration
Arbitration is expressly excluded.

8.4 Jury Trial
Nothing herein constitutes a waiver of any constitutional right to trial by jury.

8.5 Injunctive Relief
Nothing limits Landlord’s right to seek injunctive relief, including eviction or ejectment, as a cumulative remedy.

9. GENERAL PROVISIONS

9.1 Amendment & Waiver
No amendment or waiver of any provision of this Addendum is effective unless in a writing signed by both Parties. Failure to enforce any provision is not a waiver of future enforcement.

9.2 Assignment
Tenant may not assign rights or delegate duties under this Addendum without Landlord’s prior written consent. Any unpermitted assignment is void.

9.3 Successors & Assigns
This Addendum is binding on and inures to the benefit of the Parties and their respective successors and permitted assigns.

9.4 Severability
If any provision is determined invalid or unenforceable, the remaining provisions remain in full force, and the invalid provision is reformed to the minimum extent necessary to reflect the Parties’ intent and comply with applicable law.

9.5 Integration
This Addendum and the Lease constitute the entire agreement concerning Late Fees and supersede all prior or contemporaneous communications on that subject.

9.6 Counterparts; Electronic Signature
This Addendum may be executed in multiple counterparts, each of which is deemed an original and all of which constitute one instrument. Signatures delivered by electronic means (e.g., PDF, DocuSign®) are binding to the same extent as originals.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Addendum effective as of the Effective Date.

[Optional Notary Acknowledgment – Alabama]
State of Alabama
County of [COUNTY]

Subscribed and sworn before me on this _ day of _, 20__, by _____ (Landlord) and _____ (Tenant).

Notary Public
My Commission Expires: _______

[// GUIDANCE:
1. Late Fee amounts should be reviewed for “reasonableness” under Ala. Code § 35-9A-201; excessive fees risk unenforceability as penalties.
2. Confirm county-specific filing requirements if eviction becomes necessary.
3. Attach this Addendum to, and reference it within, the Lease to ensure full incorporation.
4. Maintain signed originals for evidentiary purposes.]