Quick Answer
Under C.R.S. § 38-12-105, a Colorado residential late fee may not exceed the greater of $50 or 5% of the overdue rent. The rent must be at least a week overdue, the fee must be disclosed in the rental agreement, and you give the tenant written notice of the fee within 180 days after the rent was due. You may charge one late fee per late payment. Statute text last checked October 22, 2026.
Key Takeaways
- The cap is a greater-of test. The greater of $50 or 5% of the overdue rent.
- One week must pass. The statute requires that rent be at least a week overdue.
- Disclose it in the lease. A fee that is not disclosed in the rental agreement is outside the statute.
- Send a written notice within 180 days after the rent was due.
- A late fee alone does not support eviction. The statute does not allow evicting a tenant solely for not paying late fees.
1. The Cap
On $2,000 monthly rent, 5% is $100, which is more than $50, so $100 is the ceiling. On $800 monthly rent, 5% is $40, so the $50 figure applies. The statute also limits the base: no late fee may be charged on any portion of rent that a rent subsidy provider is responsible for paying.
2. When You May Charge
Wait until rent is at least a week overdue. Put the fee and the timing in the written rental agreement. Add the late fee to the ledger as its own line, with the date, and send the tenant a dated written notice of the amount within the 180-day window.
3. One Fee, No Interest, No Netting
Only one late fee may be charged per late payment. Multiple fees are allowed only if their combined total stays within the cap. You may not charge interest on a late fee. You also may not take the fee out of a rent payment the tenant makes, because that would make the next payment short.
4. Late Fees and Eviction
A late fee is not treated as rent for purposes of the eviction statute for unpaid rent (C.R.S. § 13-40-104(1)(d)). You may not evict, exclude a tenant, or start eviction proceedings solely for not paying late fees. In a mobile home park, you may not end a tenancy or lease solely for not paying late fees.
5. Problems With the Fee
Lease provisions that conflict with these rules are unenforceable. For a violation, the statute sets a $50 amount per violation that is not subject to the seven-day cure period. For other violations, you have seven days to cure after written or electronic notice. If the violation is not cured, the tenant may sue for compensatory damages, an amount of $150 to $1,000 per violation, court costs and reasonable attorney fees. A tenant can also raise a violation as a defense in an eviction case.
6. A Checklist
- Put the fee amount and the one-week timing in the written lease.
- Calculate the ceiling with the greater-of test for each unit.
- Exclude any portion of rent a subsidy provider pays.
- Send a dated written notice within 180 days.
- Record the fee as its own ledger line and never net it against rent.
7. What This Guide Does Not Cover
This guide covers the late fee rules in § 38-12-105. It does not cover the unpaid rent notice process, local ordinances, or tenant remedies beyond what the statute states. It states the statute and does not predict how a court will rule.
8. Questions Owners Ask
Can I charge a late fee on day three? No. The statute requires that rent be at least a week overdue.
Can I evict for an unpaid late fee? The statute does not allow eviction solely for not paying late fees. Rent itself follows the separate unpaid rent process.
What if I forgot to notify the tenant? The statute asks for written notice within 180 days after the rent was due. After that window, review the statute with an attorney before you charge.