LATE FEE ADDENDUM

to Residential Lease Agreement (Arizona)

[// GUIDANCE: This template is drafted to integrate seamlessly with any Arizona residential lease. Replace bracketed placeholders, delete guidance comments, and conform definitions to the underlying lease terminology before execution.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation (Not Applicable)
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

1. Title & Parties.
   This Late Fee Addendum (“Addendum”) is executed as of [EFFECTIVE DATE] (the “Effective Date”) by and between [LANDLORD LEGAL NAME], a [STATE] [ENTITY TYPE] (“Landlord”), and [TENANT LEGAL NAME] (“Tenant”). Landlord and Tenant are each sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

2. Recitals.
   A. Landlord and Tenant entered into that certain Residential Lease Agreement dated [LEASE DATE] (the “Lease”) for the premises commonly known as [PREMISES ADDRESS] (the “Premises”).
   B. The Parties desire to amend the Lease to set forth the terms under which late fees will be assessed and collected, in compliance with the Arizona Residential Landlord and Tenant Act, A.R.S. §§ 33-1301 et seq.

3. Consideration.
   In consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows.

4. Jurisdiction Specifications.
   a. Governing Law: State of Arizona.
   b. Forum Selection: Exclusive jurisdiction in the [COUNTY] Justice Court/Housing Department having jurisdiction over the Premises.
   c. Arbitration: Excluded.
   d. Jury Waiver: None (Tenant’s constitutional right preserved).
   e. Injunctive Relief: Landlord’s statutory eviction remedies expressly preserved.

II. DEFINITIONS

For purposes of this Addendum (capitalized terms not defined herein have the meanings assigned in the Lease):

1. “Due Date” means the date on which Monthly Rent is contractually due under the Lease, currently the ___ day of each calendar month.
2. “Grace Period” means the required statutory period beginning on the Due Date and ending at 11:59 p.m. on the fifth (5th) calendar day thereafter. A.R.S. § 33-1314(C).
3. “Late Fee” means the monetary charge assessed for Tenant’s failure to deliver the full Monthly Rent on or before expiration of the Grace Period.
4. “Late Fee Cap” means the maximum aggregate Late Fee permitted under Section III.2(b).
5. “Notice of Late Fee” means the written notice specifying the amount of Late Fee and any unpaid Rent, delivered in accordance with Section VIII.2.

III. OPERATIVE PROVISIONS

1. Grace Period Compliance.
   a. Landlord shall not assess any Late Fee unless the full Monthly Rent remains unpaid after expiration of the Grace Period.
   b. Partial payments during the Grace Period toll Late Fees only to the extent of such payments.

2. Late Fee Structure.
   a. Flat-Fee Option. If selected below, Tenant shall pay a one-time Late Fee of $[FLAT AMOUNT].
   b. Percentage Option. If selected below, Tenant shall pay a Late Fee equal to ___ % of the Monthly Rent.
   c. Reasonableness and Cap. Notwithstanding the option selected, total Late Fees assessed for any single rental period shall not exceed the lesser of:
   i. Five percent (5 %) of the Monthly Rent; or
   ii. $[MAX DOLLAR CAP].
   [// GUIDANCE: “5%” reflects industry-standard reasonableness guidance; practitioners may adjust downward but should avoid higher percentages absent compelling justification.]
   d. Daily Accrual (Optional). After the initial Late Fee, additional charges of $[DAILY AMOUNT] per day may accrue until full payment is received, provided the aggregate of such charges plus the initial Late Fee does not surpass the Late Fee Cap.

3. Application of Payments.
   Unless prohibited by law, payments received shall be applied first to unpaid Late Fees, then to accrued Rent, and finally to current Rent. A.R.S. § 33-1314(C) authorizes contractual allocation of payments.

4. Non-Waiver.
   Landlord’s acceptance of Rent or partial Rent without collection of Late Fees shall not constitute a waiver of Landlord’s right to later demand the Late Fees or to enforce any remedy for default.

5. No Interest.
   Unless otherwise permitted by law and expressly stated herein, Late Fees are liquidated damages and do not constitute interest.

IV. REPRESENTATIONS & WARRANTIES

1. Mutual Authority. Each Party represents it has full authority to execute and perform this Addendum.
2. Landlord Compliance. Landlord represents that the Late Fee structure herein is reasonable and complies with A.R.S. § 33-1314(C) and all applicable municipal ordinances.
3. Tenant Review. Tenant acknowledges review of this Addendum and opportunity to consult independent counsel.

V. COVENANTS & RESTRICTIONS

1. Tenant Covenants. Tenant shall:
   a. Pay Late Fees in lawful money of the United States concurrently with payment of delinquent Rent; and
   b. Not tender checks dated after the Grace Period to circumvent Late Fees.

2. Landlord Covenants. Landlord shall:
   a. Provide a contemporaneous Notice of Late Fee each time a Late Fee is assessed; and
   b. Retain proof of delivery of such notice in compliance with Section VIII.2.

VI. DEFAULT & REMEDIES

1. Events of Monetary Default. Failure to pay Late Fees within five (5) days after delivery of the Notice of Late Fee constitutes an independent monetary default under the Lease.

2. Cure Period. Tenant may cure a monetary default by remitting all outstanding Rent and Late Fees within five (5) calendar days after Notice of Late Fee.

3. Graduated Remedies.
   a. First Monetary Default in Any 12-Month Period: Written warning and assessment of Late Fee.
   b. Second Monetary Default in Same 12-Month Period: Late Fee plus reimbursement of Landlord’s reasonable collection costs.
   c. Third (or Subsequent) Monetary Default in Same 12-Month Period: Landlord may, in addition to Late Fees, serve a five-day notice of termination under A.R.S. § 33-1368(B) and pursue eviction.

4. Attorney Fees & Costs. If Landlord prevails in enforcing this Addendum, Tenant shall pay Landlord’s reasonable attorney fees and court costs as permitted by law.

VII. RISK ALLOCATION

[// GUIDANCE: Per metadata, indemnification is not applicable and statutory liability caps apply. This Section is therefore intentionally omitted.]

VIII. DISPUTE RESOLUTION

1. Governing Law. This Addendum and any dispute arising hereunder shall be governed by the laws of the State of Arizona.

2. Notice Requirements. Any Notice of Late Fee or notice of default shall be delivered as required by A.R.S. § 33-1313 and the notice provisions of the Lease.

3. Forum Selection. All actions shall be brought exclusively in the [COUNTY] Justice Court (Housing Division) having jurisdiction over the Premises.

4. Arbitration. The Parties expressly exclude arbitration.

5. Jury Trial. Nothing herein constitutes a waiver of Tenant’s constitutional right to trial by jury.

6. Injunctive Relief. Landlord’s right to obtain possession through forcible detainer or other statutory eviction remedy is specifically preserved.

IX. GENERAL PROVISIONS

1. Integration. This Addendum, together with the Lease, constitutes the entire agreement on Late Fees. All prior agreements, whether oral or written, are merged herein.

2. Conflicts. In the event of any conflict between this Addendum and the Lease, this Addendum controls with respect to Late Fees.

3. Amendments & Waivers. No amendment or waiver of any provision of this Addendum is effective unless in a writing signed by both Parties.

4. Assignment. Tenant may not assign rights or delegate duties under this Addendum without Landlord’s prior written consent.

5. Severability. Any unenforceable provision shall be severed and the remainder enforced to the fullest extent permitted by law.

6. Electronic Signatures. Signatures transmitted via electronic means (including PDF or reputable e-signature platforms) shall be deemed originals.

X. EXECUTION BLOCK

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

[OPTIONAL NOTARY BLOCK if required by local practice]

[// GUIDANCE:
1. Customization Tips:
• Clearly mark only one Late Fee option in § III.2.
• Insert a specific dollar amount for the Late Fee Cap consistent with § III.2(c).
2. Municipal Ordinances: Some Arizona cities (e.g., Tempe, Tucson) impose additional rental fee disclosure requirements—confirm compliance.
3. Record Retention: Retain proof of every Notice of Late Fee; courts routinely require documentation in eviction actions.
4. Update Lease Cross-References: Ensure Lease default provisions reference this Addendum’s graduated remedies (Section VI).
]