What is the maximum late fee in Minnesota?

Eight percent of the overdue rent payment, and only if the tenant and landlord agreed in writing.

Is there a grace period in Minnesota?

The statute sets none. The written agreement must say when the late fee will be imposed.

Does an early-payment discount change the Minnesota due date?

No. The due date for late fee purposes does not include an earlier date by which paying earns the tenant a discount.

Minnesota Late Fee Law for Rent: 8% Cap

Minnesota Statutes 504B.177 allows a late fee only if the landlord and tenant agreed to it in writing, the agreement says when the fee is imposed, and the fee is no more than 8 percent of the overdue rent payment. The statute sets no grace period of its own, so the timing is whatever the written agreement says. It also stops an early-payment discount from moving the due date.

What does 504B.177(a) require?

Three things, all in paragraph (a). An agreement in writing between landlord and tenant that allows a late fee. A statement in that agreement of when the fee will be imposed. And a ceiling: the fee may not exceed eight percent of the overdue rent payment. The statute adds that a late fee charged is not considered either interest or liquidated damages, which keeps it from being measured by those other legal tests.

Eight percent of what, exactly?

Of the overdue rent payment, not the monthly rent in general. That wording matters when a tenant pays part of the month on time.

Example a made-up Minnesota unit rents for $1,350, due the 1st. If the tenant pays nothing by the date the agreement says fees start, eight percent of $1,350 is $108. If the tenant pays $900 on time and $450 remains overdue, the safer reading is 8 percent of the overdue $450, which is $36, since the statute measures the fee against the overdue payment. Charging $108 on that second tenant risks exceeding the cap.

What about early-payment discounts?

Paragraph (a) says the "due date" does not include an earlier date by which, if rent is paid, the tenant earns a discount. So a lease that charges $1,400 but gives $50 off if paid by the 1st has a $1,400 rent due on the day the lease sets, not on the 1st. A tenant who misses the discount date is not late for fee purposes. Treat the discount as a discount, and put the real due date in the agreement.

Is there a statutory grace period?

No. Minnesota leaves the timing to the written agreement, which must say when the fee will be imposed. That puts a lot of weight on the sentence you write. A clause such as "a late fee of 8 percent applies if rent is not received by the 6th" is clear. A clause that says "reasonable late fees may apply" does not say when, and that gap is where owners lose. Another practical point: charge the same way each month so the agreement and your behavior match.

What changes for subsidized tenants?

Paragraph (b) lets a landlord follow a federal late fee schedule where a federal program for a subsidized tenancy conflicts with (a). Paragraph (c) says that if you have a housing assistance payments contract with a government, the fee is calculated and assessed only on the portion of rent the tenant pays, not the government's share.

What should the written agreement say?

Minnesota asks for two things in writing: that a late fee may be imposed, and when. A strong clause names the exact day (for example "if rent is not received by the 6th"), the percentage (anything up to 8 percent), and what the percentage applies to, which is the overdue rent payment. Spell out the base because tenants who pay part of the month are the ones most likely to question the amount.

It also helps to keep the due date honest. If you advertise a lower price for early payment, write the regular rent and the discount as two separate lines so nobody can argue that the discount date was the real due date. The statute already says the discount date is not the due date for late fee purposes, and a lease that mirrors that avoids a dispute.

Last, keep subsidy tenants in a separate bucket. If a government pays part of the rent, the fee is figured only on the tenant's share, so one clause that fits every unit may need an exception for those units.

How DoorKeeping handles it in Minnesota

DoorKeeping carries the 8 percent ceiling and the written-agreement requirement in its Minnesota rules. You approve a fee rule once, and fees post automatically within the cap on the day your lease names. The lease itself can be e-signed, and tenants pay your own bank. This is general information, not legal advice.

Sources

Minnesota Statutes 504B.177, Late fees (Office of the Revisor of Statutes), read Oct 30, 2026

Questions

What is the maximum late fee in Minnesota?: Eight percent of the overdue rent payment, and only if the tenant and landlord agreed in writing.
Is there a grace period in Minnesota?: The statute sets none. The written agreement must say when the late fee will be imposed.
Does an early-payment discount change the Minnesota due date?: No. The due date for late fee purposes does not include an earlier date by which paying earns the tenant a discount.