LATE FEE ADDENDUM

to Residential Lease Agreement – State of Tennessee

I. DOCUMENT HEADER

1. Parties
   This Late Fee Addendum (the “Addendum”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
   • [LANDLORD LEGAL NAME], a [STATE OF ORGANIZATION] [ENTITY TYPE], whose mailing address is [LANDLORD ADDRESS] (“Landlord”); and
   • [TENANT LEGAL NAME], an individual whose mailing address is [TENANT ADDRESS] (“Tenant”).

2. Recitals
   A. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [LEASE DATE] (the “Lease”) concerning the premises located at [PREMISES ADDRESS] (the “Premises”).
   B. The parties desire to supplement the Lease to address late-payment grace periods, capped late fees, and related notice requirements in compliance with applicable Tennessee residential landlord-tenant 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 & Authority
   This Addendum is incorporated into and made part of the Lease. In the event of conflict, the provisions of this Addendum shall govern with respect to late fees.

II. DEFINITIONS

For purposes of this Addendum (capitalized terms not defined herein have the meanings assigned in the Lease):

“Business Day” – Any day other than a Saturday, Sunday, or federal or Tennessee state holiday.

“Due Date” – The date on which a periodic installment of Rent is contractually due under the Lease.

“Grace Period” – The period beginning on the calendar day immediately after the Due Date and ending at 11:59 p.m. on the fifth (5th) calendar day thereafter, excluding any day that is a Sunday or legal holiday if required under Tennessee law.

“Late Fee” – The sum assessed by Landlord for Rent not received in cleared funds by the end of the Grace Period, calculated in accordance with Section III.2.

“Rent” – Any and all sums defined as rent in the Lease, including but not limited to base rent, utilities, and other recurring charges that Tennessee law permits to be treated as rent.

III. OPERATIVE PROVISIONS

1. Grace Period
   Tenant shall not be in default for failure to timely pay Rent until the expiration of the Grace Period, provided that Rent is actually received by Landlord (or Landlord’s designated agent) in immediately available funds on or before the last day of the Grace Period.

2. Late Fee; Statutory Cap
   (a) If Rent is not paid in full by the end of the Grace Period, Landlord may assess a Late Fee equal to the lesser of:
   i. Ten percent (10%) of the amount of Rent past due; or
   ii. The maximum amount permitted by Tennessee residential landlord-tenant law as of the Effective Date.
   (b) The Late Fee shall constitute “additional rent” under the Lease and shall be immediately due and payable without further notice or demand.
   (c) Landlord shall not impose any interest, penalty, or charge on late Rent other than the Late Fee described herein, except as may be specifically authorized under Tennessee law.

3. Method and Priority of Application
   Payments received after the assessment of a Late Fee shall be applied in the following order: (i) first to any outstanding Late Fees, (ii) then to the oldest outstanding Rent charges.

4. Written Notice of Default
   Landlord shall provide Tenant with written notice of the failure to pay Rent and the assessment of the Late Fee. Delivery of such notice may be combined with, or occur subsequent to, any statutory demand or notice required for non-payment of Rent or eviction proceedings.

5. Cure of Late Fee
   Payment of the Late Fee does not waive Landlord’s right to pursue any other remedy for non-payment of Rent, including eviction. However, timely payment of all outstanding Rent plus the Late Fee within any statutorily prescribed cure period shall cure the default arising solely from late payment.

[// GUIDANCE: Customize notice delivery method (e.g., certified mail, hand-delivery) to align with local court practice.]

IV. REPRESENTATIONS & WARRANTIES

1. Mutual Authority
   Each party represents that it has full legal right, power, and authority to enter into this Addendum and perform its obligations.

2. Accurate Information
   Tenant warrants that all payment instruments tendered will be honored on presentation and that no voluntary act of Tenant will impede timely payment of Rent.

3. Survival
   The representations and warranties in this Section survive termination of the Lease to the extent necessary to enforce the payment of any outstanding Late Fees.

V. COVENANTS & RESTRICTIONS

1. Landlord Covenant – Landlord shall not charge or collect any late fee, penalty, or interest that exceeds, or is calculated in a manner inconsistent with, applicable Tennessee statutory limits.

2. Tenant Covenant – Tenant shall pay Rent on or before the Due Date and any Late Fee promptly when due. Repeated late payments may constitute an incurable default as provided in Section VI.

3. Notice Obligations – Each party shall comply with all statutory notice requirements prior to instituting any legal action, including eviction.

VI. DEFAULT & REMEDIES

1. Events of Default
   (a) Failure to pay Rent by the end of the Grace Period.
   (b) Failure to pay assessed Late Fees within [NUMBER] Business Days after written notice.

2. Cure Period
   Where Tennessee law mandates a cure period for non-payment of Rent, Tenant may cure the default by paying all sums due within such period.

3. Graduated Remedies
   (a) Assessment of Late Fee as additional rent.
   (b) Service of statutory notice of default and demand for possession.
   (c) Commencement of eviction proceedings in the court of competent jurisdiction.
   (d) Recovery of Landlord’s reasonable attorney fees and court costs as permitted by law and the Lease.

4. No Waiver
   Acceptance of partial payment, including payment of Rent without Late Fees, shall not constitute a waiver unless Landlord expressly agrees in writing.

VII. RISK ALLOCATION

1. Indemnification – Not applicable to this Addendum per party agreement.

2. Limitation of Liability
   Nothing in this Addendum shall be construed to expand or reduce the parties’ liability beyond statutory limits imposed by Tennessee law.

3. Force Majeure
   Neither party shall be liable for failure to perform monetary obligations delayed by events beyond its reasonable control; however, this does not excuse or defer the payment of Rent or Late Fees.

VIII. DISPUTE RESOLUTION

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

2. Forum Selection
   Exclusive venue lies in the [COUNTY] County Housing/General Sessions Court of the State of Tennessee (the “Housing Court”).

3. Arbitration
   The parties expressly exclude arbitration; all disputes shall be adjudicated in the Housing Court unless otherwise agreed in a subsequent signed writing.

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

5. Injunctive Relief / Eviction
   Nothing herein limits Landlord’s statutory right to seek dispossession or other injunctive relief, including issuance of a writ of possession.

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.

2. Assignment
   Tenant may not assign or sublet any interest in the Lease or this Addendum without Landlord’s prior written consent, except as may be permitted by Tennessee law.

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

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

5. Integration
   This Addendum, together with the Lease, constitutes the entire agreement of the parties regarding late fees and supersedes all prior or contemporaneous oral or written agreements on that subject.

6. Counterparts; Electronic Signatures
   This Addendum may be executed in multiple counterparts, each deemed an original, together constituting one instrument. Signatures transmitted electronically shall be deemed originals.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Addendum effective as of the date first set forth above.

[OPTIONAL NOTARY ACKNOWLEDGMENT – attach if required by local practice]

[// GUIDANCE:
1. Populate placeholders in ALL CAPS/italics before issuing for signature.
2. Confirm local court designation—some Tennessee counties lack separate housing courts and utilize General Sessions Court.
3. Verify county population to ensure applicability of Tennessee’s Uniform Residential Landlord and Tenant Act; if in a non-URLTA county, mirror the statute’s late-fee cap contractually.
4. Attach this Addendum to each executed copy of the Lease and reference it in the lease index/TOC.
]