LATE FEE ADDENDUM

to Residential Lease Agreement (Texas)

[// GUIDANCE: This Addendum is intended for use with a pre-existing Texas residential lease (the “Lease”). Insert only one Late Fee structure (flat OR daily); delete the unused option. Verify the dwelling-unit count to apply the correct statutory cap under Tex. Prop. Code § 92.019.]

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.
   a. Landlord: [LANDLORD LEGAL NAME], a [type of entity][state of formation] (“Landlord”).
   b. Tenant: [TENANT FULL LEGAL NAME(S)] (“Tenant”).
2. Premises. The real property located at [STREET ADDRESS, CITY, TX ZIP] (the “Premises”).
3. Lease Reference. Landlord and Tenant entered into that certain Residential Lease Agreement dated [LEASE DATE] (the “Lease”).
4. Purpose. Pursuant to Tex. Prop. Code § 92.019, the parties desire to supplement the Lease to establish lawful late-rent charges.
5. Effective Date. This Addendum is effective as of [EFFECTIVE DATE] (“Effective Date”) and is incorporated into the Lease as if fully set forth therein.

II. DEFINITIONS

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

“Applicable Cap” means the maximum late fee percentage permitted by Tex. Prop. Code § 92.019(b):
(i) 12% of Monthly Rent if Landlord owns more than four dwelling units in the same development; or
(ii) 10% of Monthly Rent if Landlord owns four or fewer dwelling units in the same development.

“Due Date” means the ___ day of each calendar month on which Monthly Rent is due under the Lease.

“Grace Period” means the period ending two (2) full days after the Due Date or such longer period as stated in Section III below.

“Initial Late Fee” means the first late fee assessed after expiration of the Grace Period.

“Late Fee” means, collectively, the Initial Late Fee and any Daily Late Fee (if elected) assessed under this Addendum.

“Monthly Rent” means the monthly base rent payable under the Lease, currently $[BASE RENT].

III. OPERATIVE PROVISIONS

3.1 Grace Period

Tenant must deliver the full Monthly Rent to Landlord on or before the Due Date. Landlord shall not assess any Late Fee unless Monthly Rent remains unpaid after expiration of the Grace Period.

3.2 Late Fee Election

Landlord elects the following Late Fee structure (select ONE):

A. Flat Late Fee.
1. Amount. If Monthly Rent is not received by Landlord by the end of the Grace Period, Tenant shall pay a one-time flat late fee equal to $[FLAT FEE], which shall not exceed the Applicable Cap.
2. Maximum. No additional Late Fee shall accrue for that month.

B. Daily Late Fee.
1. Initial Fee. If Monthly Rent is not received by Landlord by the end of the Grace Period, Tenant shall pay an Initial Late Fee of $[INITIAL FEE] on the first day following the Grace Period.
2. Daily Accrual. Beginning on the day after the Initial Late Fee is assessed, Tenant shall pay a Daily Late Fee of $[DAILY FEE] per day until Monthly Rent and all Late Fees are paid in full, provided that the sum of the Initial Late Fee and all Daily Late Fees for any single month shall not exceed the Applicable Cap.

[// GUIDANCE: Confirm that the dollar values entered in Section 3.2 do not exceed (Applicable Cap × Monthly Rent).]

3.3 Characterization and Application

Late Fees constitute “rent” under the Lease. Payments received shall be applied in the order required by the Lease; if no order is stated, then to (i) Late Fees, (ii) other fees, and (iii) Monthly Rent.

3.4 Non-Waiver

Acceptance of any rent payment that is less than the full amount owed, including Late Fees, shall not constitute a waiver of Landlord’s right to collect the balance owed or any other remedy.

3.5 Adjustment of Late Fees

If Monthly Rent is lawfully increased or decreased, the dollar-amount limits in Section 3.2 shall automatically adjust to remain within the Applicable Cap.

IV. REPRESENTATIONS & WARRANTIES

1. Landlord’s Warranty. Landlord represents that:
   a. Late Fees assessed hereunder are reasonable estimates of Landlord’s damages for late payment of rent, and
   b. The Late Fee structure selected in Section 3.2 complies with Tex. Prop. Code § 92.019 and any successor statute.
2. Tenant’s Warranty. Tenant acknowledges that Tenant:
   a. Has read and understands this Addendum;
   b. Had the opportunity to consult legal counsel; and
   c. Agrees that the Late Fee provisions are reasonable and enforceable.

V. COVENANTS & RESTRICTIONS

1. Timely Payment. Tenant shall pay all Late Fees concurrently with the next rent payment after such Late Fees accrue, unless otherwise demanded in writing by Landlord.
2. Notice Obligations. Tenant shall promptly notify Landlord of any event or circumstance that may prevent timely payment of rent.

VI. DEFAULT & REMEDIES

1. Events of Default. Any failure by Tenant to (i) pay Monthly Rent within the Grace Period, or (ii) pay any Late Fee when due, constitutes an Event of Default under the Lease, entitling Landlord to all remedies provided therein and at law.
2. Graduated Remedies.
   a. Service of statutory notice to pay or vacate;
   b. Accrual of Late Fees as additional rent;
   c. Eviction proceedings and writ of possession;
   d. Recovery of attorney’s fees and court costs as allowed by Tex. Prop. Code § 24.006.
3. Cure. Landlord may, but is not obligated to, accept a cure tender after initiation of eviction; acceptance shall not waive Landlord’s right to pursue possession if the cure is untimely or incomplete.

VII. RISK ALLOCATION

1. Indemnification. Not applicable (per metadata).
2. Limitation of Liability. Landlord’s liability for breach of this Addendum shall be limited to the remedies expressly provided under the Lease and applicable law.
3. Force Majeure. Neither party shall be liable for failure to perform monetary obligations except as prohibited by law; force majeure does not excuse payment of rent or Late Fees.

VIII. DISPUTE RESOLUTION

1. Governing Law. This Addendum and any dispute arising hereunder shall be governed by the landlord-tenant laws of the State of Texas.
2. Forum Selection. Exclusive jurisdiction and venue lie in the courts of competent jurisdiction located in [COUNTY], Texas, including the justice court or county court exercising housing jurisdiction.
3. Arbitration. The parties expressly decline arbitration.
4. Jury Trial. Nothing herein waives either party’s constitutional right to a jury trial.
5. Injunctive Relief. Landlord’s right to seek injunctive or equitable relief, including eviction, is preserved.

IX. GENERAL PROVISIONS

1. Integration. This Addendum constitutes the complete agreement regarding Late Fees and supersedes all prior discussions on this subject.
2. Amendment & Waiver. No amendment or waiver is effective unless in writing and signed by both parties. Waiver of any breach is not a waiver of subsequent breaches.
3. Assignment. Neither party may assign rights or obligations under this Addendum except as permitted by the Lease.
4. Severability. If any provision is held invalid, the remainder shall be enforced to the fullest extent permitted by law.
5. Successors & Assigns. This Addendum binds and benefits the parties and their respective heirs, executors, successors, and permitted assigns.
6. Electronic Signatures. Signatures transmitted electronically or by facsimile are deemed originals for all purposes.
7. Counterparts. This Addendum may be executed in multiple counterparts, each of which is an original and all of which together constitute one instrument.

X. EXECUTION BLOCK

[Seal, notarization, and/or witness acknowledgment if required by the underlying Lease or local practice.]

TEX. PROP. CODE § 92.019 (Late Payment of Rent; Fees) (West 2023).

[// GUIDANCE: Retain this citation only if you confirm its current validity. Delete if uncertain.]