What can a landlord charge for a bounced rent payment?
Many states cap the returned check fee. New York limits it to $20 in a consumer transaction, Oregon lets a landlord charge up to $35 plus what the bank charged, and Florida sets $25, $30 or $40 by check size, or 5% if greater. The lease must also allow the fee, and the rent itself is still owed.
Returned payment fee limits in four states
| State | Most a landlord or payee may charge | Notes |
|---|---|---|
| New York | $20, or less if the contract sets less | General Obligations Law 5-328, consumer transactions |
| Oregon | Up to $35, plus any amount the bank charged the landlord | ORS 90.302(2)(b) allows the fee for residential tenancies, using the cap in ORS 30.701(5) |
| Florida | $25 if the check is $50 or less, $30 up to $300, $40 above $300, or 5% of the face value if greater | Florida Statutes 68.065, after a written demand |
| Washington | A reasonable handling fee, plus collection costs up to $40 or the check amount, whichever is less | RCW 62A.3-515, after notice of dishonor and 15 days unpaid |
Sources: New York GOL 5-328; Oregon ORS 90.302 and ORS 30.701; Florida 68.065; Washington RCW 62A.3-515. Other states set their own caps, and some cities add rules, so check yours before you put a number in the lease.
Worked examples
Example a made-up Florida tenant's $1,600 rent check bounces. The check is over $300, so the flat amount is $40, but 5% of $1,600 is $80, which is greater. The service charge the statute allows is $80, on top of the $1,600 rent still owed.
Example a made-up Oregon owner's bank charges $12 when a tenant's $1,390 check is returned. The most the owner may charge the tenant is $35 plus the $12, or $47. The $1,390 rent is still due.
Example a made-up New York tenant's $2,100 rent payment is returned. The lease sets a $15 returned payment fee. Because the contract amount is lower than $20, the most the owner may charge is $15.
Can you charge a late fee as well?
Often a bounced payment also means rent is late. Whether you can charge both depends on your state's late fee rules and your lease. Some states cap late fees separately, and charging two fees for one missed payment can look like a penalty. See late fee limits by state before you stack them.
Whatever you charge, keep the rent and the fees apart in your records. In some states, how you apply the tenant's next payment between rent and fees is also set by law; see payment application order.
What to do when a rent payment bounces
- Reverse the payment in your books on the day the bank returns it, so the tenant's balance shows the rent as unpaid again.
- Tell the tenant in writing, the same day, with the amount due and the fee the lease allows.
- If your state requires a written demand or notice of dishonor before charging a fee, send it the way the statute says (Florida and Washington both have one).
- Ask for the replacement payment by a method that cannot bounce the same way, such as a bank transfer the tenant starts.
- Keep the bank's return notice with the tenant's record.
Many leases also let the owner require certified funds or electronic payment after a returned payment. If you want that option, put it in the lease and apply it to every tenant the same way.
How DoorKeeping handles it
With DoorKeeping, tenants pay your own bank by transfer or Zelle, so DoorKeeping never sees or returns a payment and charges no payment fees to anyone. You can ask your AI app for a tenant's balance after a return, and any fee or notice waits for your one-tap approval. DoorKeeping gives no legal advice; the fee amount comes from your lease and state law.
Sources
- New York General Obligations Law 5-328, read Oct 29, 2026
- Oregon Revised Statutes chapter 90 (ORS 90.302), read Oct 29, 2026
- Oregon Revised Statutes chapter 30 (ORS 30.701), read Oct 29, 2026
- Florida Statutes 68.065, read Oct 29, 2026
- Washington RCW 62A.3-515, read Oct 29, 2026
Questions
- How much can a landlord charge for a bounced check in New York?
- General Obligations Law 5-328 caps a dishonored check charge in a consumer transaction at $20, or less if the contract sets a lower amount.
- Can I pass my bank's returned item fee to the tenant?
- In Oregon, yes: ORS 90.302 allows up to $35 plus what the bank charged. Other states differ, so check your statute and lease.
- Does a bounced payment count as unpaid rent?
- Yes. Once the bank returns it, the rent is unpaid again and the tenant still owes it, along with any fee the lease and law allow.