LATE RENT FEE ADDENDUM

to Residential Lease Agreement

State of Vermont

[// GUIDANCE: This Addendum is intended for attachment to an existing Vermont residential lease (“Lease”). Remove or revise bracketed placeholders before execution.]

I. DOCUMENT HEADER

1. Parties. This Late Rent Fee Addendum (the “Addendum”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between [FULL LEGAL NAME OF LANDLORD] (“Landlord”) and [FULL LEGAL NAME OF TENANT(S)] (“Tenant”), each a “Party” and, collectively, the “Parties,” with reference to the following:
   a. The Parties are party to that certain Residential Lease Agreement dated [ORIGINAL LEASE DATE] (the “Lease”) concerning the premises located at [RENTAL PROPERTY ADDRESS] (the “Premises”).
   b. The Parties desire to supplement the Lease to address late-payment fees in accordance with Vermont law, including, without limitation, Title 9, Vermont Statutes Annotated, Chapter 137 (“Vermont Residential Landlord and Tenant Act”).

2. Consideration. For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as set forth below.

II. DEFINITIONS

For purposes of this Addendum, the following capitalized terms have the meanings set forth below. Terms not defined herein have the meanings ascribed in the Lease.

“Due Date” – The date each periodic Rent installment is contractually due under the Lease, currently the [DAY] of each calendar month (unless modified in accordance with the Lease).

“Grace Period” – The period commencing on the Due Date and ending at 11:59 p.m. on the [GRACE_PERIOD_DAYS]th [numeric] calendar day thereafter, during which no Late Fee shall accrue. [// GUIDANCE: Vermont practitioners commonly insert a minimum five-day grace period to ensure reasonableness.]

“Late Fee” – A charge imposed for the Tenant’s failure to pay Rent in full by the expiration of the Grace Period, calculated in accordance with Section III.1.

“Permitted Late Fee Cap” – The lesser of:
(i) [LATE_FEE_PERCENT]% of the monthly Rent;
(ii) [LATE_FEE_FLAT_AMOUNT] U.S. Dollars; or
(iii) the maximum lawful amount deemed “reasonable” under Vt. Stat. Ann. tit. 9, § 4455(b)(6) (2023) and any successor provision.

III. OPERATIVE PROVISIONS

1. Late Fee Imposition. If any portion of Rent remains unpaid after the Grace Period expires, Tenant shall immediately owe Landlord a Late Fee equal to the Permitted Late Fee Cap. The Late Fee shall be deemed additional Rent. [// GUIDANCE: Tie the Late Fee to “additional Rent” to preserve Landlord’s default remedies for non-payment.]

2. Notice of Delinquency.
   a. Landlord shall deliver written notice (the “Delinquency Notice”) to Tenant specifying:
   i. the amount of unpaid Rent;
   ii. the calculated Late Fee; and
   iii. the deadline for cure (not less than [CURE_PERIOD_DAYS] calendar days after delivery of the Delinquency Notice).
   b. Delivery shall be effected in any manner permitted under the Lease or Vermont law.

3. Application of Payments. Unless prohibited by law, payments received shall be applied in the following order: (i) outstanding fees/costs (including Late Fees), (ii) accrued interest (if any), and (iii) base Rent, commencing with the oldest outstanding balance.

4. No Waiver. Acceptance of partial Rent or failure to enforce any Late Fee on a single occasion shall not constitute a waiver of Landlord’s right to enforce this Addendum thereafter.

5. Adjustments for Statutory Changes. If applicable law is amended to alter permissible late-fee practices, this Addendum shall be deemed automatically conformed to the minimum requirements and maximum limitations of such law, without need for further action by either Party.

IV. REPRESENTATIONS & WARRANTIES

1. Mutual Authority. Each Party represents that it has full power and authority to execute and deliver this Addendum and to perform its obligations hereunder.

2. Landlord Compliance. Landlord represents that, to its knowledge, the Late Fee structure herein constitutes a reasonable estimate of costs actually incurred on account of late payment of Rent, consistent with Vt. Stat. Ann. tit. 9, § 4455(b)(6).

3. Tenant Review. Tenant represents that Tenant has had an opportunity to review this Addendum (including any statutory references) and, if desired, to consult independent counsel.

V. COVENANTS & RESTRICTIONS

1. Affirmative Covenants of Tenant. Tenant shall:
   a. Pay all Rent, Late Fees, and other charges when due, strictly in accordance with the Lease and this Addendum; and
   b. Promptly notify Landlord of any errors in the Delinquency Notice.

2. Landlord Covenant. Landlord shall impose and collect Late Fees only in accordance with this Addendum and applicable law.

VI. DEFAULT & REMEDIES

1. Event of Default. Any failure by Tenant to pay (i) Rent, (ii) a Late Fee, or (iii) any sum categorized as additional Rent, within the applicable cure period constitutes a default under the Lease.

2. Remedies. Upon default, Landlord may exercise any and all remedies available under the Lease and Vermont law, including eviction via INJUNCTIVE RELIEF (ejectment) proceedings in the designated forum. Landlord’s remedies are cumulative and not exclusive.

3. Attorney’s Fees and Costs. Consistent with Vermont law, Tenant shall reimburse Landlord for reasonable attorney’s fees and costs incurred in enforcing this Addendum, but only if (i) such fees and costs are awarded by a court of competent jurisdiction or (ii) the Lease expressly provides for mutual fee-shifting.

VII. RISK ALLOCATION

[// GUIDANCE: Per metadata, no indemnification clause is included and liability caps are governed by statute.]

1. Limitation of Liability. Neither Party shall be liable for consequential, incidental, or punitive damages arising from enforcement of Late Fees, except as expressly required by law.

VIII. DISPUTE RESOLUTION

1. Governing Law. This Addendum and any dispute arising herefrom shall be governed by the laws of the State of Vermont, without regard to conflict-of-laws principles.

2. Forum Selection. The Parties irrevocably submit to the exclusive jurisdiction of the [NAME OF COUNTY] Unit of the Vermont Superior Court, Civil Division – Housing Court, or any successor court with subject-matter jurisdiction.

3. Arbitration Excluded. The Parties expressly opt out of arbitration for any disputes arising under this Addendum.

4. Jury Waiver. Each Party acknowledges that Vermont law affords a constitutional right to trial by jury and that this Addendum does not waive such right.

5. Injunctive Relief. Nothing herein shall impair Landlord’s right to seek injunctive or equitable relief, including ejectment or possession, where permitted by law.

IX. GENERAL PROVISIONS

1. Amendment; Waiver. No amendment or waiver of any provision of this Addendum is effective unless set forth in a written instrument signed by both Parties.

2. Assignment. Tenant may not assign rights or delegate duties under this Addendum without Landlord’s prior written consent, except as allowed under the Lease.

3. Integration. This Addendum and the Lease constitute the entire agreement between the Parties with respect to late-payment fees, superseding all prior or contemporaneous oral or written agreements on that subject. Except as expressly modified herein, all terms of the Lease remain in full force and effect.

4. Severability. If any provision of this Addendum is held invalid or unenforceable, the remainder shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to reflect the Parties’ intent and comply with law.

5. 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 transmitted electronically or by facsimile are binding to the same extent as originals.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have caused this Addendum to be duly executed as of the Effective Date.

[// GUIDANCE: Add additional signature lines if multiple tenants or co-landlords. Vermont notarization is not required for residential lease documents but may be used for evidentiary purposes.]

© [YEAR] – Prepared for professional use. Customize with care and review against current Vermont statutory and local requirements prior to execution.