Quick Answer
Under N.C. Gen. Stat. § 42-46, you may charge a late fee on a residential lease with a fixed rent due date only when the rent is five calendar days or more late. For monthly rent, the fee is the greater of $15.00 or 5% of the monthly rent. For weekly rent, it is the greater of $4.00 or 5% of the weekly rent. You charge one fee for each late payment. Statute text last checked October 22, 2026.
Key Takeaways
- Day 5 is the earliest date. The statute allows a fee only when rent is five calendar days or more late.
- The cap is a “greater of” test. Monthly rent uses $15.00 or 5% of monthly rent, whichever is larger.
- One fee per late payment. Repeat fees for the same late payment are outside the statute.
- Do not net the fee against later rent. A late fee cannot be deducted from a later rent payment so that the later payment becomes late.
- Water and sewer are separate. The statute does not allow a late fee for unpaid water or sewer charges billed under G.S. 62-110(g).
1. When the Clock Starts
Section 42-46 counts calendar days, not business days. If rent is due on the 1st, the fee is not available until the rent is five calendar days late. Weekends and holidays do not stop the count. Write the due date and the day-five date into your rent ledger so the date is a fact in your records and not a memory.
2. How Much You May Charge
The statute sets a ceiling and not a target. The fee may not be more than the amounts below.
| Rent period | Ceiling under § 42-46 |
|---|---|
| Monthly | The greater of $15.00 or 5% of monthly rent |
| Weekly | The greater of $4.00 or 5% of weekly rent |
A tenant who pays $900 a month has a 5% figure of $45.00, which is more than $15.00, so $45.00 is the ceiling. A tenant who pays $250 a month has a 5% figure of $12.50, so the $15.00 floor applies and the ceiling is $15.00.
3. One Fee, No Stacking
The statute allows one late fee for each late payment. It also does not allow you to collect the fee by deducting it from a later rent payment so that the later payment becomes late. To keep the ledger clean, record the fee as its own line item and keep it separate from the rent line.
4. Subsidized Rent
When rent is subsidized, such as by a HUD, USDA, state, or local program, § 42-46 calculates the fee on the tenant’s share of rent only. Check the lease and the program rules before you set a figure.
5. Put It in the Lease
Write the fee, the five-day rule, and the dollar or percentage figure into the written lease before the tenancy starts. A fee that is described in the lease, applied the same way to every tenant, and recorded with a date is easier to explain than one set case by case. Lease terms that conflict with § 42-46 are not enforceable under the statute’s own limits section, so use the statute’s figures as the ceiling when you draft.
6. A Checklist
- Put the late fee and the day-five rule in the written lease.
- Calculate the ceiling for each unit using the greater-of test.
- Record the due date, the day-five date, and the date payment arrived.
- Charge the fee once, as a separate line, and send the tenant a dated notice of the amount.
- Leave water and sewer charges out of any late fee calculation.
7. What This Guide Does Not Cover
This guide covers the late fee rules in G.S. 42-46 for residential leases with a fixed rent due date. It does not cover fees after an eviction complaint is filed, which is a separate part of the statute, or commercial leases, local ordinances, or the facts of an individual dispute. It states the statute and does not predict how a court will rule.
8. Questions Owners Ask
Can I charge the fee on day three if my lease says so? No. Section 42-46 sets day five as the earliest date, and lease terms that conflict with the statute are not enforceable.
Can I charge a late fee every week the rent stays unpaid? The statute allows one late fee per late payment. Charge it once and record it.
Does the fee have to be in the lease? Put it in the written lease. The administrative fees in subsections (e) through (g) of the statute expressly call for a written lease, and a written term is the clearest record for the late fee too.