LATE FEE ADDENDUM

to Residential Lease Agreement – Commonwealth of Massachusetts

I. DOCUMENT HEADER

1. Parties
   a. Landlord: [LANDLORD LEGAL NAME], with a mailing address of [LANDLORD ADDRESS] (“Landlord”).
   b. Tenant(s): [TENANT LEGAL NAME(S)], residing at the Premises defined below (“Tenant”).

2. Premises
   The real property located at [STREET ADDRESS, CITY/TOWN, MA ZIP] (the “Premises”).

3. Underlying Lease
   This Late Fee Addendum (the “Addendum”) is incorporated into and made part of that certain Residential Lease Agreement dated [ORIGINAL LEASE DATE] between Landlord and Tenant (the “Lease”).

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

5. Recitals
   WHEREAS, the Lease requires timely payment of Monthly Rent; and
   WHEREAS, Massachusetts law restricts the imposition of late fees for residential tenancies;
   NOW, THEREFORE, in consideration of the mutual covenants herein and in the Lease, the parties agree as follows.

II. DEFINITIONS

For purposes of this Addendum, capitalized terms have the meanings set forth below:

1. Addendum – This Late Fee Addendum.
2. Due Date – The date on which Monthly Rent is payable under the Lease, presently the ___ day of each calendar month.
3. Grace Period – The period beginning on the Due Date and ending at 11:59 p.m. on the 30th calendar day thereafter, during which no Late Fee may be assessed under applicable Massachusetts law.
4. Late Fee – A charge assessed by Landlord for Tenant’s failure to pay Monthly Rent after expiration of the Grace Period, calculated pursuant to § III.3 below.
5. Lease – The Residential Lease Agreement identified in § I.3.
6. Monthly Rent – The base rent payable each month under the Lease, presently $[MONTHLY RENT AMOUNT].

[// GUIDANCE: Keep definitions alphabetical if additional terms are added.]

III. OPERATIVE PROVISIONS

1. Incorporation by Reference
   The Lease is incorporated herein by reference. In the event of conflict, the more restrictive provision (as to Landlord’s ability to impose fees) controls.

2. Timely Payment Obligation
   Tenant shall pay Monthly Rent on or before the Due Date, in the manner required by the Lease.

3. Assessment of Late Fee
   a. Prerequisites – Landlord may assess a Late Fee only if:
   i. Monthly Rent (or any portion thereof) remains unpaid after the Grace Period; and
   ii. Landlord has delivered a Written Late Fee Notice pursuant to § III.4.
   b. Calculation – The Late Fee shall be the lesser of:
   i. Five percent (5 %) of the outstanding Monthly Rent; or
   ii. $[FIXED CAP AMOUNT].
   c. Characterization – Any Late Fee assessed under this Addendum constitutes “rent” for all purposes under the Lease and Massachusetts law, including any notice to quit for non-payment.

4. Written Late Fee Notice
   Landlord shall provide Tenant with written notice specifying (i) the amount of Monthly Rent outstanding, (ii) the prospective Late Fee, and (iii) the deadline for payment, which shall be not less than five (5) business days from Tenant’s receipt of such notice. Delivery may be made in any manner permitted for notices under the Lease.

5. Payment Application
   Unless prohibited by law, payments received from Tenant shall be applied first to outstanding Late Fees and other charges, then to Monthly Rent.

IV. REPRESENTATIONS & WARRANTIES

1. Mutual Authority
   Each party represents that it has full legal capacity and authority to enter into this Addendum and perform hereunder.

2. Landlord Compliance
   Landlord represents that the Late Fee structure herein complies with current Massachusetts landlord-tenant law and any municipal ordinances then in effect.

3. Tenant Review
   Tenant acknowledges having had the opportunity to review this Addendum and to consult legal counsel.

V. COVENANTS & RESTRICTIONS

1. Tenant Covenant – Tenant shall:
   a. Remit Monthly Rent on or before the Due Date; and
   b. Pay any properly noticed Late Fee in full on or before the deadline set forth in the Written Late Fee Notice.

2. Landlord Covenant – Landlord shall:
   a. Refrain from assessing any fee or penalty for late payment that is (i) imposed prior to expiration of the Grace Period or (ii) exceeds the cap in § III.3(b); and
   b. Maintain accurate records of Rent and Late Fee assessments.

VI. DEFAULT & REMEDIES

1. Events of Default
   Tenant’s failure to pay (i) Monthly Rent when due or (ii) any Late Fee after the notice and cure period set forth in § III.4 constitutes an Event of Default.

2. Remedies
   Upon an Event of Default, Landlord may exercise any and all rights available under the Lease and applicable law, including but not limited to:
   a. Service of a 14-day notice to quit for non-payment of rent;
   b. Commencement of summary process proceedings in the [COUNTY] Division of the Massachusetts Housing Court;
   c. Recovery of all lawful costs and reasonable attorney’s fees if so provided in the Lease.

[// GUIDANCE: Confirm that attorney-fee provisions in the main Lease are reciprocal to avoid Massachusetts fee-shifting issues.]

VII. RISK ALLOCATION

1. Indemnification – Intentionally omitted per § Metadata (“Indemnification: not_applicable”).

2. Limitation of Liability
   No provision of this Addendum limits or expands either party’s liability beyond statutory limits imposed by Massachusetts law.

3. Force Majeure
   Neither party shall be liable for delay or failure in performance caused by events beyond its reasonable control; however, Tenant’s obligation to pay Rent and Late Fees is expressly excluded from this clause.

VIII. DISPUTE RESOLUTION

1. Governing Law
   This Addendum and the Lease shall be governed by the laws of the Commonwealth of Massachusetts, without regard to conflict-of-law principles.

2. Forum Selection
   The parties consent to exclusive jurisdiction in the Massachusetts Housing Court having venue over the Premises.

3. Arbitration
   Nothing herein shall be construed to require or permit arbitration; any arbitration clause in the Lease is expressly superseded as to matters governed by this Addendum.

4. Jury Trial
   Each party retains its constitutional right to a trial by jury. No provision of this Addendum shall be deemed a waiver thereof.

5. Injunctive Relief
   Nothing herein limits Landlord’s statutory right to seek summary process or injunctive relief (including eviction or possession) for non-payment of rent.

IX. GENERAL PROVISIONS

1. Amendment & Waiver
   No amendment or waiver of any provision of this Addendum is effective unless in writing and signed by both parties. A waiver of any breach is not a waiver of any other or subsequent breach.

2. Assignment
   Tenant may not assign this Addendum or the Lease absent Landlord’s written consent, except as otherwise provided by Massachusetts law.

3. Successors & Assigns
   This Addendum is binding upon and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns.

4. Severability
   If any provision of this Addendum is found invalid or unenforceable, the remaining provisions remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to comply with law.

5. Integration
   This Addendum, together with the Lease and any other written addenda, constitutes the complete and exclusive statement of the parties’ agreement regarding late fees and supersedes all prior or contemporaneous oral or written agreements on this subject.

6. Counterparts; Electronic Signatures
   This Addendum may be executed in counterparts, each of which is an original, and all of which together constitute one instrument. Signatures transmitted electronically or by facsimile are binding.

X. EXECUTION BLOCK

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

[Optional Notary Acknowledgment—delete if not required.]

TABLE OF CONTENTS

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

[// GUIDANCE: Remove Table of Contents page numbers or adjust if document is reformatted.]

ATTORNEY NOTES

1. Late fees for residential tenancies in Massachusetts may not be assessed until rent is at least 30 days overdue (see 940 CMR 3.17). This Addendum hard-codes that statutory grace period.
2. Municipal ordinances (e.g., Boston, Cambridge) occasionally impose additional caps or notice requirements—verify local rules and fill in the placeholder caps accordingly.
3. Ensure the Late Fee amount chosen is reasonable and proportionate to avoid characterization as an unenforceable penalty.
4. Confirm that any attorney-fee provisions in the underlying Lease are drafted to satisfy the reciprocity requirements under Massachusetts law.
5. This Addendum omits indemnification language per the client’s metadata instructions; if the underlying Lease contains broad indemnities, harmonize the documents to avoid conflicting obligations.