Can I waive a late fee for one tenant and charge it to another?
You can waive a fee you are owed, but waiving it for some tenants and not others creates a risk: federal fair housing rules bar using different lease terms or conditions based on a protected characteristic, so a pattern that tracks race, family status, disability or another protected class can be a problem. The way to stay safe is to write one waiver rule, apply it to everyone the same way, and record each decision with its reason. This is general information, not legal advice.
What fair housing says about terms and conditions
24 CFR 100.65 lists discrimination in the terms, conditions and privileges of a rental. Its list includes "using different provisions in leases," "failing or delaying maintenance or repairs," and "limiting the use of privileges, services or facilities." The rule applies when the difference is because of a protected characteristic. A late fee is a term and condition. Charging it to one tenant and forgiving it for another is only a problem if the reason for the difference is, or looks like, a protected class.
The rule is not about kindness. A landlord who waives for a long-time tenant after a hospital stay is fine. A landlord who waives for tenants they like and never for tenants they do not, with no reason written down, has nothing to show if a complaint arrives.
Reasons that hold up
A good waiver reason is one you would give to the next tenant in the same situation. These are the kinds that usually pass:
- A bank or platform outage on your side, or a delay you caused, such as a wrong address on the payment page.
- A first late payment in a long tenancy, if you waive the first late payment for everyone.
- A payment sent on time that landed late for a documented reason.
- A late fee you charged by mistake, such as one that went over your state's cap.
Write one policy and use it every time
- Pick the waiver rule in plain words, for example "one waiver per tenant in any 12 months, for the first late payment."
- Put it in your lease or house rules, so a tenant can read it before they need it.
- For every waiver or refusal, write the date, the tenant, the reason and the rule it matched.
- Review your list a few times a year. If waivers cluster around some tenants and not others, find out why.
Example a made-up owner has 10 units. In a year, 6 tenants pay late once. All six are offered the first-time waiver and 5 accept. Two tenants pay late a second time and are charged the fee. Every decision matches the rule and is on file, so there is nothing to explain.
The same idea applies to other charges, such as a returned payment fee or a pet fee. If you waive one for a tenant, ask whether you would waive it for the next tenant in the same position, and write down the answer.
Keep the books clean
A waived fee should show as a waiver in the ledger, not as a missing charge. Charge it and then credit it with a note, so the history shows what you were owed and what you gave up. That makes it easy to show the pattern to yourself and to anyone who asks. It also keeps your reports honest: late fee income stays in the books at what you were owed, and the waiver line shows what you chose to give up, so you can see what your leniency costs over a year.
How DoorKeeping handles it
DoorKeeping adds late fees within your state's caps, and every fee or waiver on a tenant waits for your one-tap approval, with the reason in the record. Because the rule is written once and each decision is logged, you can see at a glance who got a waiver and why. DoorKeeping gives no legal advice, so check your state's late fee rule and your lease.
Sources
Questions
- Is it illegal to waive a late fee for one tenant?
- No, not by itself. It becomes a risk if the pattern follows a protected characteristic, so use one written rule and record each decision.
- Do I have to waive late fees for anyone?
- Not under federal law. Some states cap or restrict fees, and a disability-related accommodation request can change the answer, so check your state's rule.
- Should I put the waiver rule in the lease?
- It helps. A tenant can read it in advance, and you can point to it when you apply it.