Maine late fee laws for rent: a 15-day wait and a 4 percent cap
Maine builds a long wait into its definition of late. Under 14 MRSA 6028, rent is not late until 15 days after it is due, a landlord may assess a penalty of no more than 4 percent of one month's rent, and the landlord must have given the tenant written notice of that possible penalty at the time they entered into the rental agreement.
What are the three parts of section 6028?
The section is short, and each of its three numbered parts is a condition. Subsection 1 defines late: "a payment of rent is late if it is not made within 15 days from the time the payment is due." Subsection 2 sets the maximum: a penalty may not exceed 4 percent of the amount due for one month. Subsection 3 requires notice: no penalty unless the landlord gave written notice, when the rental agreement began, that a penalty of up to 4 percent of one month's rent may be charged.
When does the 15 days start and end?
The count runs from when payment is due. With rent due on the 1st, paying by the 16th is not late, so the first day a penalty can apply is the 17th. A due date that falls on a weekend or holiday is a question for your lease and local practice, so write the due date and the cut-off date into the agreement itself.
Example a made-up Maine tenant rents for $1,250, due the 1st. Four percent of $1,250 is $50. The tenant pays on the 14th: no penalty, because that is inside 15 days. The tenant pays on the 20th: the landlord may assess up to $50, but only if the move-in paperwork carried the written notice that a penalty of up to 4 percent of one month's rent may be charged. Without that notice, the answer is $0.
What does the written notice need to say?
The statute asks for notice "at the time they entered into the rental agreement" that "a penalty, up to 4% of one month's rent, may be charged for the late payment of rent." Put that sentence, or something that says the same thing, into the lease or a signed addendum on the day the tenant signs. Adding it months later does not satisfy the section for that tenant. For an existing tenant who never got the notice, the safest course is not to charge.
Can you charge it daily, or add it up every month?
The statute caps "a penalty" for the late payment of rent at 4 percent of the amount due for one month. It does not describe a running daily charge, and a charge that grows by the day would have to stay inside that single 4 percent limit for the late payment. Treat the penalty as one charge per late month, and do not add it to next month's rent amount.
What should go in the move-in paperwork?
Because Maine ties the penalty to notice given at the time of the rental agreement, the move-in packet is where this rule is won or lost. Put the sentence about the possible penalty on its own line, near the rent amount, rather than inside a long block of terms. Have the tenant initial or sign beside it, and keep the signed copy with the lease.
For month-to-month tenants who started years ago, ask what paperwork you actually have from the day they began. If there is no written notice from that day, the conservative course is to waive the penalty for that tenant and fix the form for the next one. Renewals are a good time to review the form, but the statute looks to the time the rental agreement was entered into, so a later notice may not repair the gap.
Finally, remember the 15 days are part of the definition of late, not a courtesy. A tenant who pays on the 16th has paid on time, which also means a reminder sent on the 5th should be friendly and not threaten a penalty that cannot yet apply.
How DoorKeeping handles it in Maine
DoorKeeping's Maine rules hold the 15-day wait, the 4 percent cap and the written-notice requirement. Once you approve a late fee rule, it posts automatically within the cap, and tenants pay your own bank, matched by memo and exact cents. The move-in notice is part of your lease, which can be e-signed. This is general information, not legal advice.
Sources
Questions
- How many days late is rent in Maine?
- Rent is late if it is not made within 15 days from the time it is due.
- What is the maximum late fee in Maine?
- 4 percent of the amount due for one month.
- Does a Maine landlord have to give notice of the late fee?
- Yes. The landlord must have given written notice when the rental agreement was entered into that a penalty of up to 4 percent of one month's rent may be charged.