Late Fee Addendum to Residential Lease Agreement

(Commonwealth of Virginia)

[// GUIDANCE: This Addendum is intended for use with residential leases governed by the Virginia Residential Landlord and Tenant Act (“VRLTA”). Insert all bracketed information before execution, and confirm compatibility with the underlying Lease and any locality-specific ordinances.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

Late Fee Addendum to Residential Lease Agreement
This Late Fee Addendum (the “Addendum”) is made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between [LANDLORD LEGAL NAME], (“Landlord”) and [TENANT LEGAL NAME], (“Tenant”) (each a “Party,” and together, the “Parties”).

Recitals
A. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [MASTER LEASE DATE] (the “Lease”), covering the residential real property commonly known as [PREMISES ADDRESS] (the “Premises”).
B. The Parties desire to supplement the Lease to address the assessment and collection of late fees in accordance with the VRLTA and any applicable local ordinances.
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.

2. DEFINITIONS

For purposes of this Addendum, capitalized terms have the meanings set forth below. Any capitalized term not defined herein has the meaning assigned in the Lease.

1. “Due Date” means the date on which periodic Rent is contractually required to be paid under the Lease, as modified by the Grace Period.
2. “Grace Period” means the statutory five- (5-) calendar-day period after the Due Date during which Rent may be paid without incurring any Late Fee.
3. “Late Fee” means the monetary amount assessed for Tenant’s failure to pay Rent in full before expiration of the Grace Period, calculated in accordance with Section 3.3.
4. “Late Fee Cap” means the maximum lawful Late Fee, equal to the lesser of:
   (a) ten percent (10%) of the periodic Rent unpaid; or
   (b) ten percent (10%) of the total amount of Rent past due.
5. “Notice of Late Fee” means a written statement delivered by Landlord to Tenant itemizing unpaid Rent, the applicable Late Fee, and the date the Late Fee accrues.

3. OPERATIVE PROVISIONS

3.1 Incorporation. This Addendum is incorporated into and made part of the Lease. In the event of conflict, the terms of this Addendum control with respect to Late Fees.

3.2 Grace Period; When Rent Is Late. Rent is due on [DUE DATE (e.g., “the first (1st) day of each month”)] and is late if not received in full by 11:59 p.m. local time on the fifth (5th) calendar day after the Due Date.

3.3 Calculation of Late Fee.
(a) On the sixth (6th) calendar day after the Due Date, Landlord may assess a Late Fee not to exceed the Late Fee Cap.
(b) The Late Fee shall be calculated as follows: [SELECT ONE & DELETE THE OTHER]
• Percentage Method: ___ % of unpaid Rent (not to exceed 10%).
• Flat-Dollar Method: $___, provided the amount does not exceed the Late Fee Cap.
(c) No compounded or daily late fees shall accrue.

3.4 Notice Requirements. Landlord shall provide Tenant a Notice of Late Fee within [NUMBER] days after assessment, specifying: (i) the Rent amount due; (ii) the Late Fee amount; (iii) the total balance; and (iv) acceptable payment methods.

3.5 Application of Payments. Payments received shall be applied first to outstanding Rent, then to Late Fees, unless otherwise required by applicable law.

3.6 No Waiver. Acceptance of partial payment or failure to assess a Late Fee on any occasion does not waive Landlord’s right to enforce this Addendum for present or future breaches.

4. REPRESENTATIONS & WARRANTIES

4.1 Mutual Authority. Each Party represents that it has full authority to enter into and perform this Addendum.

4.2 Compliance With Law. Landlord represents that the Late Fee structure herein complies with the VRLTA and any applicable municipal regulations as of the Effective Date.

4.3 Tenant Acknowledgment. Tenant warrants that Tenant has read, understands, and agrees to be bound by this Addendum and acknowledges that Late Fees constitute liquidated damages and not a penalty.

5. COVENANTS

5.1 Tenant Covenants. Tenant shall:
(a) Pay Rent in full on or before the Due Date;
(b) Pay any properly assessed Late Fee within [NUMBER] days of receipt of the Notice of Late Fee.

5.2 Landlord Covenant. Landlord shall not impose any Late Fee except as expressly permitted herein and by the VRLTA.

6. DEFAULT & REMEDIES

6.1 Event of Monetary Default. Tenant’s failure to pay Rent and any Late Fee within the cure period set forth in a written notice of default constitutes a material breach of the Lease and this Addendum.

6.2 Remedies. Upon a material breach, Landlord may exercise all rights and remedies available under the Lease and applicable law, including but not limited to:
(a) Accelerated rent (if provided for in the Lease);
(b) Recovery of reasonable attorney’s fees and court costs;
(c) Termination of tenancy and pursuit of eviction in the appropriate Virginia court.

6.3 Cumulative Remedies. Remedies are cumulative and not exclusive.

7. RISK ALLOCATION

7.1 Indemnification. No additional indemnification provisions are provided in this Addendum.

7.2 Limitation of Liability. Nothing herein expands or diminishes any statutory limitation of liability available to either Party under Virginia law.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Addendum and any dispute arising hereunder shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia, including the VRLTA, without regard to conflict-of-laws rules.

8.2 Forum Selection. The Parties consent to the exclusive jurisdiction of the [NAME OF VIRGINIA GENERAL DISTRICT COURT OR CIRCUIT COURT WITH HOUSING JURISDICTION] for any action relating to this Addendum or the Lease.

8.3 Arbitration. Arbitration is expressly excluded.

8.4 Jury Trial. Each Party retains its constitutional right to a trial by jury.

8.5 Injunctive Relief. Nothing herein limits Landlord’s right to seek injunctive or equitable relief, including but not limited to an unlawful detainer action for possession of the Premises.

9. GENERAL PROVISIONS

9.1 Amendment & Waiver. Any amendment or waiver of this Addendum must be in a writing signed by both Parties.

9.2 Assignment. This Addendum binds and benefits each Party and their respective successors and permitted assigns, subject to any assignment restrictions in the Lease.

9.3 Severability. If any provision is held invalid, the remainder shall remain enforceable to the fullest extent permitted by law, and the invalid provision shall be reformed to comply with applicable law while most closely effectuating the Parties’ intent.

9.4 Integration. This Addendum, together with the Lease and any other written addenda, constitutes the entire agreement of the Parties with respect to Late Fees and supersedes all prior or contemporaneous understandings.

9.5 Electronic Signatures. Signatures transmitted electronically or by PDF shall be deemed originals and enforceable.

9.6 Counterparts. This Addendum may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument.

10. EXECUTION BLOCK

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

[OPTIONAL NOTARIZATION BLOCK]
Commonwealth of Virginia, City/County of __:
Subscribed and sworn before me this ___ day of ____, 20, by ___.
Notary Public: ___ My Commission Expires: _ Registration No.: _

[// GUIDANCE:
1. Confirm local ordinances (e.g., Alexandria, Arlington) for stricter late-fee rules.
2. Align cure periods in Section 6 with those in the Lease to avoid inconsistency.
3. Update “Due Date,” Late Fee percentage, and Notice timeline placeholders before execution.
4. Attach this Addendum to each original Lease and retain copies in compliance with record-keeping requirements under Va. Code Title 55.1.]