RESIDENTIAL LEASE ADDENDUM – LATE FEE

(Montana Residential Landlord and Tenant Act of 1977)

[// GUIDANCE: This template is drafted to supplement an existing residential lease (the “Lease”) governed by Montana law. All bracketed items [IN ALL CAPS] must be customized before execution. Attach this Addendum to, and reference it in, the Lease. Review the underlying lease to ensure there is no conflict with the provisions below.]

TABLE OF CONTENTS

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

I. DOCUMENT HEADER

1. Parties.
   This Residential Lease Addendum – Late Fee (“Addendum”) is entered into by and between [FULL LEGAL NAME OF LANDLORD], (“Landlord”), and [FULL LEGAL NAME(S) OF TENANT(S)], (“Tenant”).

2. Recitals.
   A. Landlord and Tenant are parties to that certain [TITLE OF LEASE], dated [ORIGINAL LEASE DATE] (the “Lease”) covering the residential premises commonly known as [PREMISES ADDRESS] (the “Premises”).
   B. The parties desire to supplement the Lease to provide for late-payment grace periods, notice procedures, and late fee charges consistent with Montana law, including Mont. Code Ann. §§ 70-24-201(2) & 70-24-422 (2023).

3. Consideration.
   The mutual covenants herein and in the Lease constitute good and valuable consideration.

4. Effective Date.
   This Addendum is effective as of [EFFECTIVE DATE] (“Effective Date”) and shall be deemed incorporated into the Lease as of that date.

5. Jurisdiction.
   This Addendum is governed by Montana state landlord-tenant law (“Governing Law”).

II. DEFINITIONS

Capitalized terms used but not defined herein have the meanings ascribed to them in the Lease.

1. “Business Day” means any day other than Saturday, Sunday, or an official Montana state holiday.
2. “Due Date” means the date Monthly Rent is required to be received under the Lease, currently the [##] day of each calendar month.
3. “Grace Period” has the meaning set forth in Section III.1.
4. “Late Fee” has the meaning set forth in Section III.2.
5. “Monthly Rent” means the base rent due under the Lease, exclusive of utilities and other additional charges.

III. OPERATIVE PROVISIONS

1. Grace Period.
   Tenant shall have a grace period of [FIVE (5)] calendar days after the Due Date (“Grace Period”) within which to deliver full Monthly Rent to Landlord without incurring a Late Fee. Payment is deemed made when actually received by Landlord (not merely mailed or deposited).

2. Late Fee.
   a. If Monthly Rent is not received in full by 11:59 p.m. local time on the last day of the Grace Period, Tenant shall owe a late charge (“Late Fee”) equal to the lesser of:
   (i) [XX %] of the outstanding Monthly Rent; or
   (ii) [$XXX.XX].
   b. The Late Fee is intended to compensate Landlord for administrative costs reasonably estimated to result from late payment and shall not be deemed liquidated damages or a penalty.
   c. The Late Fee shall not exceed any cap imposed by applicable municipal ordinances, statutes, or judicial rulings in effect on the date the Late Fee is assessed.

3. Notice of Late Fee.
   Landlord shall provide written notice of any Late Fee assessed (“Late Fee Notice”) within [THREE (3)] Business Days after the Grace Period expires. The Late Fee Notice may accompany, or be combined with, any notice of default permitted under the Lease or Montana law.

4. Application of Payments.
   Unless prohibited by law, Landlord may apply payments received from Tenant in the following order: (i) outstanding Late Fees; (ii) past-due Monthly Rent; (iii) current Monthly Rent; (iv) any other charges due.

5. No Waiver; Cumulative Rights.
   Acceptance of any partial payment following the Grace Period, with or without a Late Fee, shall not constitute a waiver of Landlord’s rights to declare a default or to pursue any remedies under the Lease or Montana law.

6. Conflict.
   If any provision of this Addendum conflicts with the Lease, this Addendum controls with respect to Late Fees and related remedies.

IV. REPRESENTATIONS & WARRANTIES

1. Mutual Authority.
   Each party represents and warrants that it has full authority to execute and deliver this Addendum and to perform its obligations hereunder.

2. Tenant Acknowledgment.
   Tenant acknowledges that:
   a. The Late Fee is a reasonable estimate of Landlord’s damages caused by late payment and was negotiated at arm’s-length; and
   b. Tenant received a copy of this Addendum before signing and has had an opportunity to consult legal counsel.

3. No Other Warranties.
   Except as expressly stated herein or in the Lease, Landlord makes no representations or warranties, express or implied.

V. COVENANTS & RESTRICTIONS

1. Tenant Covenants.
   a. Timely Payment. Tenant shall pay Monthly Rent on or before the Due Date.
   b. Compliance. Tenant shall comply with all notice and payment procedures set forth herein.

2. Landlord Covenants.
   Landlord shall:
   a. Issue Late Fee Notices in compliance with Section III.3; and
   b. Maintain accurate records of all Late Fees and payments.

3. Notice; Cure.
   Any notice required under this Addendum shall be delivered in accordance with the Lease. Landlord shall accept full payment of all amounts due within the Grace Period as a complete cure of any potential default arising solely from late payment.

VI. DEFAULT & REMEDIES

1. Event of Default.
   Failure to pay Monthly Rent in full within the Grace Period constitutes an “Event of Default” under the Lease, entitling Landlord to exercise all remedies therein and under Mont. Code Ann. § 70-24-422.

2. Graduated Remedies.
   a. Assessment of Late Fee (automatic upon expiration of Grace Period).
   b. Delivery of statutory 3-Day Notice for Non-Payment of Rent (if still unpaid).
   c. Filing of eviction action in the district court or justice court having jurisdiction over the Premises.

3. Attorney Fees & Costs.
   If Landlord prevails in any action to enforce this Addendum, Tenant shall pay Landlord’s reasonable attorney fees and court costs, if and to the extent permitted by Montana law.

[// GUIDANCE: Montana courts may not enforce attorney fee provisions against a residential tenant unless expressly authorized by statute or agreed to in the lease; review § 70-24-442.]

VII. RISK ALLOCATION

1. Indemnification.
   The parties agree that no additional indemnification obligations arise from this Addendum beyond those, if any, contained in the Lease.

2. Limitation of Liability.
   Any limitation of liability or damages cap contained in the Lease applies equally to this Addendum, subject to any non-waivable statutory limits.

3. Force Majeure.
   Landlord’s obligations under this Addendum are suspended to the extent performance is rendered impossible by events constituting force majeure, as defined in the Lease.

VIII. DISPUTE RESOLUTION

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

2. Forum Selection.
   Exclusive jurisdiction and venue shall lie in the state district court or justice court situated in the county where the Premises are located (the “State Housing Court” for purposes of this Addendum).

3. Arbitration.
   The parties expressly exclude arbitration.

4. Jury Trial.
   Nothing herein shall be construed as a waiver of any right to a jury trial protected by the Montana Constitution.

5. Injunctive Relief.
   Landlord retains the right to seek immediate injunctive or equitable relief, including eviction, as provided by statute.

IX. GENERAL PROVISIONS

1. Incorporation.
   This Addendum is incorporated into and made part of the Lease. All references to “Lease” include this Addendum.

2. Amendment & Waiver.
   No modification or waiver is effective unless in a writing signed by both parties.

3. Severability.
   If any provision of this Addendum is unenforceable, the remainder shall be enforced to the fullest extent permitted by law.

4. Successors & Assigns.
   This Addendum binds and benefits the parties and their respective successors, assigns, heirs, and legal representatives, subject to any assignment restrictions in the Lease.

5. Merger.
   This Addendum and the Lease constitute the entire agreement regarding Late Fees and supersede any prior oral or written understandings.

6. Counterparts; Electronic Signatures.
   This Addendum may be executed in counterparts and by electronic signature, each of which is deemed an original and all of which together constitute one instrument.

X. EXECUTION BLOCK

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

[OPTIONAL NOTARY BLOCK – add if required by local practice]

[// GUIDANCE:
1. Always provide Tenant with a duplicate signed copy immediately after execution.
2. Retain this Addendum with the original Lease for the statutory retention period (minimum 1 year after tenancy ends under Mont. Admin. R. 24.29.801 et seq.).
3. Verify county-specific landlord-tenant ordinances to ensure there are no stricter caps or grace-period requirements.]