LATE FEE ADDENDUM

to Residential Lease or Rental Agreement (California)

[// GUIDANCE: This template is drafted for use with a California residential lease. Confirm that no local rent-control ordinance or COVID-19 moratorium imposes stricter limits before issuance. Replace all bracketed text with deal-specific terms and delete this guidance prior to execution.]

DOCUMENT HEADER

1. Parties.
   This Late Fee Addendum (the “Addendum”) is entered into by and between [LANDLORD LEGAL NAME] (“Landlord”) and [TENANT LEGAL NAME(S)] (“Tenant”) and amends that certain Residential Lease or Rental Agreement dated [ORIGINAL LEASE DATE] (the “Lease”) covering the premises located at [PREMISES ADDRESS] (the “Premises”).

2. Effective Date.
   This Addendum is effective as of [EFFECTIVE DATE] (the “Effective Date”).

3. Recitals.
   A. The Lease requires Tenant to pay Base Rent on or before [DUE DATE, e.g., the 1st day of each calendar month].
   B. The parties desire to set forth their agreement concerning late payment of Rent in compliance with applicable California landlord-tenant law, including the liquidated damages requirements of Cal. Civ. Code § 1671(d) (West 2023).
   C. In consideration of the mutual covenants herein and in the Lease, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows.

TABLE OF CONTENTS

I. Definitions
II. Operative Provisions
III. Representations & Warranties
IV. Covenants & Restrictions
V. Default & Remedies
VI. Risk Allocation
VII. Dispute Resolution
VIII. General Provisions
IX. Execution Block

I. DEFINITIONS

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

1. “Base Rent” – Monthly rent due under Section [LEASE SECTION #] of the Lease.
2. “Grace Period” – The period of [NUMBER] calendar days following the Due Date during which payment may be made without imposition of a Late Fee.
3. “Late Fee” – The liquidated damages amount assessed for failure to pay Base Rent within the Grace Period, calculated under Section II.B.
4. “Due Date” – The [e.g., 1st] day of each calendar month (or the next Business Day if such day is a legal holiday).

II. OPERATIVE PROVISIONS

A. Obligation to Pay on Time
Tenant shall pay the full amount of Base Rent on or before the Due Date in lawful money of the United States, without set-off or deduction, and by the method(s) permitted under the Lease.

B. Late Fee Assessment
1. If all or any portion of Base Rent remains unpaid after expiration of the Grace Period, Tenant shall owe a Late Fee equal to the lesser of:
a. [FLAT DOLLAR AMOUNT]; or
b. [PERCENTAGE, e.g., five percent (5%)] of the unpaid Base Rent.
2. The parties agree that:
i. the damages Landlord will suffer because of late payment are impracticable or extremely difficult to fix;
ii. the Late Fee constitutes a reasonable estimate of those damages and is not a penalty; and
iii. the Late Fee is intended to comply with Cal. Civ. Code § 1671(d) (West 2023).

C. Additional Interest (Optional)
[If elected] In addition to the Late Fee, any Rent unpaid more than [NUMBER] days after the Grace Period shall bear interest at the lesser of ten percent (10%) per annum or the maximum lawful rate, until paid in full.

D. Notice of Delinquency
Upon delinquency Landlord shall provide Tenant a written “Notice to Pay Rent or Quit” that complies with Cal. Code Civ. Proc. § 1161(2) and applicable state/local notice rules. Delivery requirements in the Lease apply unless superseded by statute.

E. Application of Payments
Payments received shall be applied first to outstanding Late Fees, returned-check charges, and interest (if any), then to the oldest outstanding Rent.

F. Returned-Payment Charge
Any Rent payment returned for insufficient funds or other non-payment shall incur a service charge of [DOLLAR AMOUNT, not to exceed statutory maximum], payable immediately upon demand, in addition to any Late Fee.

III. REPRESENTATIONS & WARRANTIES

1. Landlord Representation. Landlord represents that, to the best of its knowledge, this Addendum and the Late Fee structure comply with all applicable federal, state, and local laws and ordinances as of the Effective Date.
2. Tenant Representation. Tenant has read and understands this Addendum and acknowledges that the Late Fee is a reasonable pre-estimate of Landlord’s costs resulting from late payment of Rent.
3. Survival. The representations and warranties herein survive termination of the Lease with respect to any amounts accruing prior to such termination.

IV. COVENANTS & RESTRICTIONS

A. Tenant shall keep and perform all covenants concerning timely Rent payment in the Lease as supplemented by this Addendum.
B. Landlord shall not assess any fee, penalty, or charge for late payment of Rent except as expressly provided herein or as may be required by statute or court order.

V. DEFAULT & REMEDIES

1. Event of Default. Failure to pay Rent and applicable Late Fees within the statutory cure period following service of a proper notice constitutes an Event of Default under the Lease.
2. Remedies. Upon an Event of Default, Landlord may pursue any or all remedies available under the Lease and California law, including but not limited to eviction pursuant to an unlawful detainer action and recovery of Rent, Late Fees, interest, court costs, and reasonable attorneys’ fees.
3. Cure Before Suit. Payment in full of all amounts due before the expiration of the notice period cures the default for purposes of eviction but does not waive Landlord’s right to recover incurred Late Fees or charges.

VI. RISK ALLOCATION

[// GUIDANCE: Per instructions, indemnification is not applicable and no additional liability caps beyond statutory limits are provided.]

1. No Indemnification. No indemnity obligations are created by this Addendum.
2. Statutory Limits. Nothing herein shall be construed to limit or expand either party’s liability beyond the limitations imposed by applicable law.

VII. DISPUTE RESOLUTION

1. Governing Law. This Addendum and disputes hereunder shall be governed by California law and applicable federal law.
2. Forum Selection. Exclusive venue lies in the [COUNTY] Superior Court – Housing/Unlawful Detainer Division (or other court of competent jurisdiction), subject to statutory jurisdictional limits.
3. Arbitration. The parties expressly exclude arbitration.
4. Jury Rights Preserved. Nothing herein constitutes a waiver of a constitutional right to jury trial.
5. Injunctive Relief. Landlord may seek injunctive or declaratory relief (including eviction and writ of possession) as permitted by law.

VIII. GENERAL PROVISIONS

1. Amendments. No amendment or waiver of any provision of this Addendum is effective unless in writing and signed by both parties.
2. Integration. This Addendum and the Lease constitute the entire agreement regarding late payment of Rent and supersede all prior statements or agreements on that subject.
3. Severability. If any provision of this Addendum is held unenforceable, the remainder shall remain in effect and be construed to fulfill the parties’ intent to the maximum extent permitted by law.
4. Successors & Assigns. This Addendum binds and benefits the parties and their respective heirs, successors, and permitted assigns.
5. Counterparts & Electronic Signatures. This Addendum may be executed in counterparts, each of which is deemed an original, and signatures transmitted electronically (including via DocuSign or similar service) are binding.

IX. EXECUTION BLOCK

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

[Add additional signature lines as necessary for multiple Tenants or Landlord entities.]

[// GUIDANCE: If notarization or witness attestation is customary in your jurisdiction or required by the underlying Lease, insert the appropriate acknowledgment block(s) here.]