RESIDENTIAL LEASE ADDENDUM – LATE FEE

(Ohio)

[// GUIDANCE: This Addendum is intended to be attached to and incorporated into an existing Ohio residential lease (the “Master Lease”). Replace all bracketed text before execution. Review any applicable municipal ordinances that may impose stricter late-fee limits than those provided below (e.g., Cleveland, Toledo, or Cincinnati).]

I. DOCUMENT HEADER

1. Parties.
   This Residential Lease Addendum – Late Fee (this “Addendum”) is made and entered into as of [Effective Date] (the “Effective Date”) by and between [Landlord Legal Name] (“Landlord”) and [Tenant Legal Name(s)] (individually and collectively, “Tenant”).

2. Recitals.
   A. Landlord and Tenant are parties to that certain Residential Lease dated [Master Lease Date] (the “Master Lease”) for the real property commonly known as [Premises Address] (the “Premises”).
   B. The parties desire to supplement the Master Lease to establish the terms and conditions upon which late fees may be assessed for untimely payment of Rent, consistent with Ohio Revised Code Chapter 5321 and applicable local law.
   C. In consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows.

3. Incorporation; Conflict. This Addendum is incorporated into the Master Lease. If any provision of this Addendum conflicts with the Master Lease, this Addendum shall control with respect to late fees.

II. DEFINITIONS

For purposes of this Addendum, capitalized terms not defined herein have the meanings assigned in the Master Lease. The following additional terms apply:

“Grace Period” means the period commencing on the Rent Due Date and ending at 11:59 p.m. local time on the [Number]th calendar day thereafter (not less than five (5) days).

“Late Fee” means the monetary charge assessed pursuant to Section III for Tenant’s failure to pay Monthly Rent in full within the Grace Period.

“Late Fee Notice” means a written notice delivered by Landlord to Tenant in accordance with Section IX.4 specifying the Late Fee and the amount of unpaid Rent.

“Monthly Rent” means the fixed monthly Base Rent payable under the Master Lease, exclusive of any additional rent or other charges.

III. OPERATIVE PROVISIONS

1. Grace Period. Tenant shall be entitled to the Grace Period for each Monthly Rent installment. No Late Fee shall accrue or be payable if Monthly Rent is received by Landlord in immediately available funds before expiration of the Grace Period.

2. Late Fee Calculation. If any portion of Monthly Rent remains unpaid after the Grace Period:
   a. A one-time Late Fee equal to the lesser of:
   i. five percent (5 %) of the unpaid Monthly Rent; or
   ii. One Hundred Dollars ($100.00)
   shall be immediately due and payable, plus
   b. an additional $ [Daily Increment] per day for each day thereafter that Monthly Rent remains unpaid, not to exceed an aggregate Late Fee cap of the greater of $150.00 or ten percent (10 %) of Monthly Rent for that month.

[// GUIDANCE: Ohio has no statewide statutory cap; however, courts routinely strike “penalty” late fees. A 5 % cap is widely considered “reasonable.” Customize subsection (b) or delete daily accrual if desired.]

3. Reasonableness Acknowledgment. The parties acknowledge that the Late Fee represents a fair and reasonable estimate of Landlord’s administrative costs and damages arising from late payment and is not a penalty. See Ohio Rev. Code Ann. § 5321.06 (LexisNexis 2024).

4. Notice Requirement. Landlord shall deliver a Late Fee Notice to Tenant following the Grace Period. Failure to give such notice shall not waive Landlord’s right to the Late Fee, but the Late Fee shall not be collectible until the Notice is provided.

5. Application of Payments. Unless prohibited by law, payments received shall be applied first to outstanding Late Fees, then to unpaid Additional Rent, and lastly to Monthly Rent, unless Landlord elects otherwise.

6. Non-Waiver. Acceptance of Rent or Late Fees after the Grace Period shall not constitute a waiver of any default or Landlord’s right to enforce the Master Lease or this Addendum.

IV. REPRESENTATIONS & WARRANTIES

1. Authority. Each party represents that it has the full right, power, and authority to enter into and perform this Addendum and that the signatory below is duly authorized.

2. Compliance. Landlord represents that, to its knowledge, the Late Fee structure herein complies with applicable Ohio statutes and municipal ordinances as of the Effective Date.

V. COVENANTS & RESTRICTIONS

1. Tenant Covenant to Pay. Tenant shall timely pay all Late Fees as Additional Rent.
2. Landlord Covenant to Comply with Law. Landlord shall not assess Late Fees in excess of those permitted by this Addendum or applicable law.

VI. DEFAULT & REMEDIES

1. Late Fee Default. Failure to pay any Late Fee within [Cure Period – e.g., 3] days after written demand shall constitute a monetary default under the Master Lease.

2. Graduated Remedies. Upon default, Landlord may:
   a. Impose interest at [Interest Rate]% per annum on unpaid amounts;
   b. Exercise all rights under the Master Lease, including but not limited to eviction pursuant to Ohio Rev. Code Ann. § 5321.05(A)(1) and Chapter 1923; and
   c. Recover reasonable attorney fees and court costs where permitted by law and the Master Lease.

3. No Exclusive Remedy. Remedies are cumulative and may be exercised concurrently or successively.

VII. RISK ALLOCATION

[// GUIDANCE: Metadata specifies “Indemnification: not_applicable” and “Liability Caps: statutory_limits,” therefore no additional provisions are inserted in this section.]

VIII. DISPUTE RESOLUTION

1. Governing Law. This Addendum and any dispute related hereto shall be governed by the laws of the State of Ohio, without giving effect to principles of conflicts of law.

2. Forum Selection. The parties irrevocably submit to the exclusive jurisdiction of the [County Name] County Municipal Housing Court (or other court of competent jurisdiction within the State of Ohio) for any action arising out of or related to this Addendum.

3. Arbitration. Arbitration is expressly excluded.

4. Jury Trial. Nothing herein shall be construed as a waiver of any constitutional right to a jury trial.

5. Injunctive Relief. Nothing in this Addendum limits Landlord’s statutory right to seek eviction-related injunctive or equitable relief.

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 on one occasion is not a waiver on any subsequent occasion.

2. Assignment. Neither party may assign its rights or obligations under this Addendum except as permitted under the Master Lease.

3. Successors & Assigns. This Addendum binds and benefits the parties and their respective heirs, successors, legal representatives, and permitted assigns.

4. Notices. All notices under this Addendum shall be given in the manner required by the Master Lease and addressed to the parties at the addresses set forth therein or such other address designated in writing.

5. Severability. If any provision of this Addendum is determined invalid or unenforceable, the remainder shall remain in full force, and the parties agree to modify the invalid provision to achieve its intended purpose to the maximum extent permitted by law.

6. Integration. This Addendum, together with the Master Lease, constitutes the entire agreement regarding late fees and supersedes all prior or contemporaneous understandings.

7. Counterparts; Electronic Signatures. This Addendum may be executed in counterparts, each of which is deemed an original, and all of which constitute one instrument. Signatures delivered via electronic means shall be treated as originals.

X. EXECUTION BLOCK

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

[Add additional signature blocks for multiple tenants if necessary.]

[Notary Acknowledgment – include if required by local practice]

[// GUIDANCE:
1. Confirm the Master Lease permits late fees and does not contain conflicting provisions.
2. Verify municipal ordinances for any stricter caps or prohibited daily accruals.
3. Maintain copies of all Late Fee Notices to demonstrate compliance with notice obligations.
4. Reassess the “reasonable estimate” of damages periodically; excessive fees risk being struck as unenforceable penalties.
]