RESIDENTIAL LEASE ADDENDUM

(Late Rent Fee – State of Maryland)

[// GUIDANCE: This stand-alone addendum is drafted to be attached to and made a part of an existing residential lease (the “Base Lease”). Replace bracketed items with client-specific data. Delete guidance comments 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; Parties
This Residential Lease Addendum (Late Rent Fee – Maryland) (the “Addendum”) is entered into as of [Effective Date] (the “Effective Date”) by and between:

a. [LANDLORD NAME], [entity type], having an address at [Landlord Notice Address] (“Landlord”); and
b. [TENANT NAME], having an address at the Leased Premises identified below (“Tenant”).

1.2 Recitals
A. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [Lease Date] (together with all prior amendments, the “Base Lease”) concerning the residential property located at [Street Address, City, Maryland Zip] (the “Leased Premises”).
B. The parties desire to supplement the Base Lease to set forth their understanding regarding the assessment and payment of late fees in accordance with Maryland 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 Incorporation; Hierarchy
This Addendum is hereby incorporated into the Base Lease. If a conflict exists between the Base Lease and this Addendum, the terms of this Addendum shall control solely with respect to late fees.

2. DEFINITIONS

“Base Lease” – see Section 1.2.
“Business Day” – any day other than Saturday, Sunday, or a Maryland legal holiday.
“Grace Period” – the ten (10) consecutive calendar days immediately following the Rent Due Date.
“Late Fee” – the monetary amount calculated in accordance with Section 3.1.
“Monthly Rent” – the fixed monthly rental installment set forth in the Base Lease.
“Rent Due Date” – the calendar day of each month on which Monthly Rent is first due under the Base Lease (typically the first (1st) day of each month, unless otherwise stated).

3. OPERATIVE PROVISIONS

3.1 Late Fee Amount
Subject to Section 3.2, if Monthly Rent remains unpaid after expiration of the Grace Period, Tenant shall owe Landlord a one-time Late Fee equal to the lesser of (i) five percent (5%) of the unpaid Monthly Rent, or (ii) the maximum amount permitted by Md. Code Ann., Real Prop. § 8-208(d)(3).

3.2 Conditions to Assessment
a. No Late Fee shall accrue unless the full amount of Monthly Rent is outstanding after 11:59 p.m. on the final day of the Grace Period.
b. Only one Late Fee may be assessed per rental period, regardless of the number of days the payment remains overdue.
c. Late Fees shall not bear interest, nor shall additional penalties accrue on an outstanding Late Fee balance.

3.3 Notice of Late Fee
Landlord shall provide Tenant written notice of the Late Fee at the time the fee is assessed. The notice may be delivered (i) separately, or (ii) in the same writing that demands payment of past-due rent.

3.4 Treatment as Additional Rent
All Late Fees constitute “Additional Rent” under the Base Lease and are subject to the same remedies and collection procedures applicable to unpaid Rent.

4. REPRESENTATIONS & WARRANTIES

4.1 Landlord’s Warranties
Landlord represents and warrants that:
a. The Late Fee structure in this Addendum complies with all applicable Maryland statutes, including the cap and grace-period requirements of Md. Code Ann., Real Prop. § 8-208(d)(3).
b. No fees, penalties, or charges other than as expressly set forth herein will be imposed for late payment of Monthly Rent.

4.2 Tenant’s Representations
Tenant acknowledges that Tenant has read and understands this Addendum, and that Tenant was afforded an opportunity to seek independent legal advice prior to execution.

4.3 Survival
The representations and warranties in this Section survive termination of the Base Lease to the extent necessary to enforce rights arising from any Late Fee assessed prior to such termination.

5. COVENANTS & RESTRICTIONS

5.1 Tenant Covenants
a. Tenant shall pay any Late Fee within [X] Business Days after written demand.
b. Tenant shall not withhold or offset any portion of a Late Fee against future Rent obligations, except as expressly permitted by law.

5.2 Landlord Covenants
Landlord shall maintain accurate ledgers reflecting Late Fees separately from Rent and shall provide Tenant, upon written request, with an accounting of all Late Fees assessed and paid.

5.3 Notice Obligation
Each party shall promptly notify the other of any change in its mailing address for notices.

6. DEFAULT & REMEDIES

6.1 Events of Default
An “Event of Default” occurs if Tenant fails to (i) pay a Late Fee within the period stated in Section 5.1(a), or (ii) cure any related monetary default as required by the Base Lease.

6.2 Cure Period
Before exercising a remedy for non-payment of a Late Fee, Landlord shall provide Tenant with written notice and a minimum five (5) Business Day cure period, unless a longer period is provided in the Base Lease.

6.3 Graduated Remedies
Upon an uncured Event of Default, Landlord may, subject to Maryland law:
a. Apply any payment from Tenant first to Late Fees, then to accrued Rent;
b. Initiate summary ejectment or eviction proceedings pursuant to Md. Code Ann., Real Prop. § 8-401;
c. Recover reasonable attorney’s fees and court costs where allowed by statute or the Base Lease.

6.4 Mitigation Duty
Landlord shall take commercially reasonable steps to mitigate damages consistent with Maryland common law.

7. RISK ALLOCATION

7.1 Indemnification
[Not applicable – intentionally omitted pursuant to metadata instructions.]

7.2 Limitation of Liability
Nothing in this Addendum shall expand or limit either party’s liability beyond any cap or protection provided under applicable Maryland statutes or the Base Lease.

7.3 Force Majeure
Obligations to pay Rent or Late Fees are absolute and shall not be excused by force majeure, except as may be mandated by state or federal law (e.g., governmental rent relief orders).

8. DISPUTE RESOLUTION

8.1 Governing Law
This Addendum and any dispute arising hereunder shall be governed by the laws of the State of Maryland, without regard to conflict-of-law principles.

8.2 Forum Selection
The parties consent to exclusive jurisdiction of the [County] District Court for Maryland – Landlord-Tenant Division (the “Housing Court”) for any action relating to this Addendum or the Base Lease.

8.3 Arbitration
Arbitration is expressly excluded.

8.4 Jury Trial
Nothing herein constitutes a waiver of either party’s constitutional right to a trial by jury.

8.5 Injunctive Relief
Nothing in this Addendum limits Landlord’s statutory right to seek possession or other injunctive relief (including eviction) under Maryland law.

9. GENERAL PROVISIONS

9.1 Amendment; Waiver
No amendment or waiver of this Addendum is effective unless in a writing signed by both parties. A waiver on one occasion is not a waiver on any subsequent occasion.

9.2 Assignment
This Addendum binds and inures to the benefit of the parties and their respective successors and permitted assigns. Tenant may not assign rights or delegate duties hereunder without Landlord’s prior written consent where such consent is required under the Base Lease.

9.3 Severability
If any provision of this Addendum is held invalid or unenforceable, the remaining provisions remain in full force and effect, and the invalid provision shall be reformed to the minimum extent necessary to achieve its original intent.

9.4 Integration
This Addendum, together with the Base Lease, constitutes the entire agreement between the parties with respect to Late Fees and supersedes all prior or contemporaneous oral or written understandings on that subject.

9.5 Counterparts; Electronic Signatures
This Addendum may be executed in one or more counterparts (including via electronic signature), each of which is deemed an original and all of which together constitute one instrument.

10. EXECUTION BLOCK

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

[OPTIONAL NOTARY ACKNOWLEDGMENT – Use if required by the Base Lease or local practice.]

[// GUIDANCE:
1. Confirm that the Base Lease does not already contain conflicting late-fee language. If it does, strike or supersede that language when attaching this Addendum.
2. Verify county-specific filing, notice, or mediation prerequisites (e.g., Baltimore City’s “Right to Cure” notice) before initiating eviction for non-payment.
3. Re-calculate the 5% cap if rent includes utilities or other bundled charges; the statute references “rent,” which Maryland courts interpret as the portion designated in the lease as base rent.
4. Retain proof of delivery for all Late Fee notices to support any subsequent court action.
5. Review annually for statutory amendments to Md. Code Ann., Real Prop. § 8-208 or related housing regulations.]