RESIDENTIAL LEASE LATE FEE ADDENDUM

(Commonwealth of Pennsylvania)

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

Late Fee Addendum (this “Addendum”) to that certain Residential Lease Agreement dated [MASTER LEASE DATE] (the “Lease”) by and between [LANDLORD LEGAL NAME], (“Landlord”) and [TENANT LEGAL NAME] (“Tenant,” and together with Landlord, the “Parties”).

This Addendum is effective as of [EFFECTIVE DATE] and is incorporated into, and shall be deemed part of, the Lease for the premises located at [PROPERTY ADDRESS] (the “Premises”).

The Parties agree that all capitalized terms used but not defined herein have the meanings given in the Lease.

2. DEFINITIONS

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

1. “Base Rent” means the monthly rent amount stated in the Lease, exclusive of Additional Rent.
2. “Business Day” means any day other than Saturday, Sunday, or a Pennsylvania state-recognized holiday.
3. “Due Date” means the first (1st) calendar day of each month, unless otherwise provided in the Lease.
4. “Grace Period” means the period after the Due Date during which Tenant may pay Base Rent without incurring a Late Charge, as specified in Section 3.1.
5. “Late Charge” means the amount assessed pursuant to Section 3.2 for Tenant’s failure to pay Base Rent within the Grace Period.
6. “Notice of Late Charge” means written notice provided under Section 3.3.

3. OPERATIVE PROVISIONS

3.1 Grace Period
Tenant shall have a grace period of [NUMBER] calendar days after the Due Date (“Grace Period”) to remit full payment of Base Rent. The Grace Period must comply with, and shall automatically be extended to the extent required by, any applicable state or municipal law or ordinance.
[// GUIDANCE: Many Pennsylvania municipalities (e.g., Philadelphia) mandate a minimum 9-day grace period for residential leases. Verify local requirements before inserting a shorter period.]

3.2 Late Charge
If Tenant fails to pay the full Base Rent on or before expiration of the Grace Period, Tenant shall owe Landlord a Late Charge equal to the lesser of:

(a) [PERCENTAGE]% of the unpaid Base Rent; or
(b) $[AMOUNT].

The Late Charge shall be deemed Additional Rent under the Lease and shall be immediately due and payable without further demand.
[// GUIDANCE: Pennsylvania imposes a “reasonableness” standard; many localities cap Late Charges at 10% of monthly rent. Insert figures that comply with both state law and any municipal ordinance.]

3.3 Notice Requirement
Landlord shall provide Tenant a Notice of Late Charge specifying (a) the amount of unpaid Base Rent, (b) the Late Charge calculated under Section 3.2, and (c) the date by which both amounts must be paid to avoid further default. Notice may be delivered in any manner permitted under the Lease.

3.4 Application of Payments
Any payment received shall be applied first to outstanding Late Charges, then to past-due Additional Rent, and finally to Base Rent, unless Landlord elects otherwise or applicable law mandates a different order of application.

3.5 Cumulative Nature
The remedies and charges set forth in this Addendum are in addition to, and not in limitation of, any other rights or remedies available to Landlord under the Lease or applicable law.

4. REPRESENTATIONS & WARRANTIES

4.1 Authority
Each Party represents that it has full right, power, and authority to enter into this Addendum and that the person signing below on its behalf is duly authorized.

4.2 No Conflict
Tenant represents that acceptance of this Addendum does not violate any other agreement to which Tenant is a party.

4.3 Compliance
Landlord represents that the Late Charge structure herein is designed to comply with Pennsylvania law and any applicable municipal ordinance but makes no representation as to Tenant’s particular circumstances.

4.4 Survival
The representations and warranties in this Section survive the termination of the Lease to the extent necessary to enforce accrued obligations.

5. COVENANTS & RESTRICTIONS

5.1 Tenant Covenant to Pay
Tenant covenants to pay the Late Charge as Additional Rent in lawful United States currency, together with any unpaid Base Rent, on or before the date stated in the Notice of Late Charge.

5.2 Landlord Covenant to Notify
Landlord covenants to issue the Notice of Late Charge in accordance with Section 3.3 before assessing any Late Charge, unless such notice is waived by applicable law due to repeated delinquency.

5.3 Compliance Monitoring
Both Parties agree to comply with any subsequently enacted statutes, regulations, or ordinances that affect Late Charges; this Addendum shall be deemed automatically amended to the minimum extent necessary to maintain compliance.

6. DEFAULT & REMEDIES

6.1 Event of Monetary Default
Failure to pay Base Rent, any Late Charge, or any Additional Rent within [NUMBER] calendar days after written notice of non-payment constitutes an Event of Monetary Default under the Lease.

6.2 Cure Period
Tenant may cure an Event of Monetary Default by paying all outstanding sums within the cure period set forth in the Lease or, if none, within ten (10) days after the Notice of Late Charge.

6.3 Remedies
Upon an Event of Monetary Default, Landlord may, subject to applicable Pennsylvania law:

a. Declare all unpaid sums immediately due and payable;
b. Commence eviction proceedings in the Pennsylvania housing court of proper venue;
c. Recover reasonable attorney’s fees and court costs where permitted; and
d. Exercise any other remedy described in the Lease or provided by statute.

7. RISK ALLOCATION

7.1 Indemnification
No indemnification is provided or required under this Addendum.

7.2 Limitation of Liability
Nothing in this Addendum shall expand or limit liability beyond any statutory limitations applicable to residential leases in Pennsylvania.

7.3 Force Majeure
Neither the assessment nor the accrual of Late Charges shall be tolled by force majeure events; Tenant’s payment obligation is absolute, subject only to defenses available under applicable landlord-tenant law.

8. DISPUTE RESOLUTION

8.1 Governing Law
This Addendum and any dispute arising hereunder are governed by the laws of the Commonwealth of Pennsylvania, without regard to conflicts-of-law principles.

8.2 Forum Selection
The Parties consent to the exclusive jurisdiction of the state-level housing court or magisterial district court having venue over the Premises.

8.3 Arbitration
Arbitration is expressly excluded.

8.4 Jury Trial
The Parties acknowledge that the right to jury trial in residential eviction proceedings is generally protected; nothing herein shall be construed as a waiver of any constitutional jury right.

8.5 Injunctive Relief
Nothing in this Addendum limits Landlord’s right to seek injunctive or summary eviction remedies permitted under Pennsylvania law.

9. GENERAL PROVISIONS

9.1 Amendment & Waiver
This Addendum may be modified only by a written instrument executed by both Parties. No waiver of any provision shall be effective unless in writing and signed by the waiving Party.

9.2 Assignment
Tenant shall not assign its rights or delegate its duties under this Addendum without Landlord’s prior written consent, except as otherwise permitted by law.

9.3 Successors & Assigns
Subject to Section 9.2, this Addendum binds and benefits the Parties and their respective successors and assigns.

9.4 Severability
If any provision is held invalid or unenforceable, the remainder of this Addendum remains in full force, and the invalid provision shall be reformed to the minimum extent necessary to achieve its original intent.

9.5 Integration
This Addendum constitutes the entire agreement of the Parties with respect to Late Charges and supersedes all prior or contemporaneous oral or written agreements on that subject.

9.6 Counterparts & Electronic Signatures
This Addendum may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures transmitted electronically (e.g., PDF, DocuSign) are deemed originals.

10. EXECUTION BLOCK

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

[OPTIONAL NOTARIZATION AND/OR WITNESS ACKNOWLEDGMENT IF REQUIRED BY LOCAL LAW]

[// GUIDANCE FOR PRACTITIONERS:
1. Confirm municipal ordinances (e.g., Philadelphia Code § 9-800 et seq.) that may impose stricter caps or longer grace periods.
2. Cross-check the Lease for any conflicting late-fee language and expressly supersede it if necessary.
3. Ensure all Notices of Late Charge comply with applicable service requirements (e.g., hand delivery, certified mail, posting).
4. Review attorney-fee clauses in the Lease to ensure consistency with Section 6.3(c).
5. Consider attaching a sample Notice of Late Charge for client operational use.
]