LATE FEE ADDENDUM

to Residential Lease Agreement – Commonwealth of Kentucky

[// GUIDANCE: This Addendum is designed for attachment to a pre-existing Kentucky residential lease. It incorporates Kentucky-specific statutory notice requirements and industry-standard “reasonableness” limits on late fees. Edit bracketed items and optional language to fit the underlying lease and local ordinances.]

I. 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,” whether one or more).

2. Lease Reference
   This Addendum amends and is incorporated into that certain Residential Lease Agreement dated [ORIGINAL LEASE DATE] (the “Lease”) covering the residential real property commonly known as [PREMISES ADDRESS] (the “Premises”).

3. Recitals
   A. The Lease requires Tenant to pay Monthly Rent when due.
   B. The parties desire to set forth the terms under which a late fee may be assessed if rent is not received within the agreed grace period, all in compliance with applicable Kentucky law.
   C. The parties enter into this Addendum for good and valuable consideration, the sufficiency of which is acknowledged.

4. Effective Date – This Addendum is effective as of [EFFECTIVE DATE] (“Effective Date”) and shall remain in force for the Lease Term, including any renewals or hold-over periods.

5. Governing Law – This Addendum and the Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky, without regard to conflict-of-laws principles.

II. DEFINITIONS

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

“Addendum” – This Late Fee Addendum, as amended or modified in writing.
“Grace Period” – The period after the Rent Due Date during which rent may be paid without incurring a Late Fee, as set forth in Section III.2.
“Late Fee” – The fee assessed under Section III.3 for the Tenant’s failure to remit Monthly Rent within the Grace Period.
“Monthly Rent” – The recurring rental payment due under the Lease.
“Notice of Nonpayment” – Written notice from Landlord demanding payment of past-due rent and Late Fees in accordance with KRS § 383.660(1), where applicable.
“Premises” – The real property identified in Section I.2.
“Statutory Cure Period” – The minimum seven-(7-) day period provided by KRS § 383.660(1) (in jurisdictions where the Kentucky Uniform Residential Landlord and Tenant Act (“URLTA”) has been adopted).

III. OPERATIVE PROVISIONS

1. Incorporation and Conflict
   This Addendum is hereby made a part of, and fully incorporated into, the Lease. If any term of this Addendum conflicts with the Lease, the term more protective of Landlord’s ability to recover Late Fees (while remaining lawful) shall control.

2. Rent Due Date & Grace Period
   a. Monthly Rent is due on the [DAY] day of each calendar month (“Rent Due Date”).
   b. A Grace Period of [FIVE (5)] consecutive calendar days following the Rent Due Date is granted.
   c. Rent received after 11:59 p.m. local time on the final day of the Grace Period shall be deemed late.

[// GUIDANCE: Kentucky does not impose a statutory grace period, but best practice is 3–5 days. Insert any local-ordinance requirement if stricter.]

3. Late Fee Assessment
   a. If Tenant fails to pay Monthly Rent within the Grace Period, Tenant shall immediately owe a Late Fee equal to the greater of:
   (i) $[FIXED AMOUNT]; or
   (ii) [PERCENTAGE]% of the Monthly Rent,
   provided, however, that the Late Fee shall not exceed 10 % of the Monthly Rent or $60, whichever is greater, or any lower cap imposed by applicable law or local ordinance.
   b. Late Fees shall not compound or accrue interest.

[// GUIDANCE: Kentucky statutes do not set a specific dollar or percentage cap. “Reasonableness” governs. Modify the cap to comply with any local ordinance (e.g., Lexington-Fayette Urban County Government).]

4. Daily Per-Diem (Optional)
   [OPTIONAL] If Monthly Rent remains unpaid [NUMBER] days after the end of the Grace Period, an additional per-diem Late Fee of $[AMOUNT] per day may be assessed until rent is paid in full, subject to the overall cap in Section III.3.a.

5. Application of Payments
   Payments received shall be applied in the following order unless prohibited by law: (i) Late Fees; (ii) returned-payment fees; (iii) outstanding utilities or other sums due; and (iv) current Monthly Rent.

6. Notice Requirements
   a. Landlord shall provide Tenant a written Notice of Nonpayment demanding the unpaid amounts.
   b. In counties that have adopted URLTA, Landlord must give Tenant at least seven (7) days after delivery of the Notice of Nonpayment to pay all sums due before filing for eviction. Ky. Rev. Stat. Ann. § 383.660(1).
   c. In non-URLTA jurisdictions, Landlord will provide any notice required by the lease or by local ordinance, whichever is stricter.

7. No Waiver
   Acceptance of partial rent or Late Fees after default does not waive Landlord’s right to enforce the Lease, file an eviction action, or collect future Late Fees.

8. Compliance Representation
   Landlord represents that, to the best of Landlord’s knowledge, the Late Fee structure herein is lawful under all applicable federal, state, and local laws and regulations at the time of execution.

IV. REPRESENTATIONS & WARRANTIES

1. Authority – Each party represents it has full legal capacity and authority to enter into this Addendum.
2. Accuracy – Tenant warrants that any payment instrument tendered will be honored upon presentation.
3. Survival – Representations and warranties survive the termination or expiration of the Lease to the extent necessary to enforce unpaid Late Fees.

V. COVENANTS & RESTRICTIONS

1. Tenant Covenants
   a. Timely Payment – Tenant shall pay Monthly Rent and any Late Fees when due without set-off or deduction.
   b. Good Funds – Payments shall be made in U.S. funds via the method(s) permitted in the Lease.

2. Landlord Covenants
   Landlord shall assess Late Fees only in accordance with this Addendum and applicable law.

VI. DEFAULT & REMEDIES

1. Events of Default
   a. Nonpayment of Monthly Rent within the Grace Period;
   b. Failure to pay assessed Late Fees within the Statutory Cure Period (if applicable) or within [TEN (10)] days after written demand in non-URLTA jurisdictions.

2. Notice & Cure
   Notices shall comply with Section III.6 and any stricter Lease requirement.

3. Remedies
   a. Eviction – Landlord may initiate eviction (forcible detainer) proceedings in the [COUNTY] District Court Housing Division.
   b. Money Judgment – Landlord may seek a money judgment for unpaid rent, Late Fees, court costs, and reasonable attorneys’ fees if provided in the Lease.
   c. Cumulative Remedies – Remedies are cumulative and non-exclusive.

VII. RISK ALLOCATION

1. Indemnification – Not applicable (per Metadata).
2. Limitation of Liability – Neither party limits liability beyond any statutory limitation imposed by Kentucky law.
3. Force Majeure – Performance dates (but not monetary obligations) are extended to the extent delayed by events of force majeure as defined in the Lease.

VIII. DISPUTE RESOLUTION

1. Governing Law – Commonwealth of Kentucky.
2. Forum Selection – Exclusive jurisdiction and venue lie in the state Housing Court (District Court, [COUNTY]).
3. Arbitration – Expressly excluded.
4. Jury Trial – The constitutional right to trial by jury is preserved.
5. Injunctive Relief – Nothing herein limits Landlord’s right to seek injunctive or equitable remedies, including eviction.

IX. GENERAL PROVISIONS

1. Amendment; Waiver – No amendment or waiver is effective unless in a writing signed by both parties.
2. Assignment – Tenant may not assign rights or delegate duties under this Addendum without Landlord’s prior written consent.
3. Successors & Assigns – This Addendum binds and benefits the parties and their lawful successors and assigns.
4. Severability – If any provision is held invalid, the remainder will continue in full force and effect.
5. Integration – This Addendum constitutes the entire agreement on its subject matter and supersedes all prior oral or written representations.
6. Counterparts; Electronic Signatures – This Addendum may be executed in counterparts, each deemed an original. Signatures delivered electronically or by facsimile are binding.

X. EXECUTION BLOCK

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

[OPTIONAL NOTARY BLOCK – use if required by local ordinance or if notarization is desired for evidentiary purposes.]

[// GUIDANCE: Prior to implementation, confirm (a) whether the property lies in a county that has adopted URLTA; (b) whether any city or county ordinance imposes a stricter late-fee cap or longer grace period; and (c) that the Lease’s attorneys’ fee clause is fully enforceable under Kentucky law.]