Understanding Rental Late Fees

If you pay your rent late, your landlord may charge you a late fee. But Colorado law places strict limits on when and how much your landlord can charge. 

This guide explains what late fees are, what landlords can and cannot do, and what steps you can take if you are charged an illegal fee.

What is a late fee?

A late fee is extra money you may owe your landlord if you do not pay rent on time.

Some landlords also try to charge “posting fees” or other charges. These are often just late fees, and the same limits apply.

When can my landlord charge a late fee?

Your landlord can charge a late fee if: 

• The rental agreement disclosed that late fees are allowed
  • Unless the lease is only a spoken agreement, this means that your written lease specifies that late fees are allowed. 
• Rent is at least 7 calendar days late
• The fee does not exceed: 
  • $50, or
  • 5% of the monthly rent, whichever is greater. 

Examples:

• If rent is $300, the maximum late fee is $50.
• If rent is $2,000, the maximum late fee is $100 (5%).

Other rules:

• Daily late fees are allowed, but the total cannot go above the $50/5% limit.
• Landlords cannot charge interest on late fees.

Can I be evicted for not paying a late fee?

No. A landlord cannot evict you or take you to court just for not paying a late fee.

Other protections:

• Rent payments must be applied to rent first, not late fees. Always write down what your payment is for (for example, “January rent”).
• In mobile home parks, a landlord cannot end your lease just because you did not pay late fees.
• If your rent is subsidized, you cannot be charged a late fee because the subsidy provider paid late.

What if my landlord charges an illegal late fee?

Any lease term that violates Colorado’s late fee law is void and unenforceable.

• You can:
  • Write your landlord a letter explaining the fee is illegal.
  • Demand a $50 penalty for each violation.
  • Give your landlord 7 days to fix the problem.

If your landlord refuses:

• You may sue in court. In court, you can ask for:
  • Repayment of any late fees you wrongly paid.
  • A penalty of $150 to $1,000 per violation.
  • Court costs and attorney’s fees.

What if my landlord includes late fees in a Demand for Compliance?

A Demand (or "Demand for Compliance or Possession") is a formal notice your landlord gives you if they think you haven’t paid rent or have otherwise violated the rules in your lease. It’s the first legal step toward eviction. You should take it seriously. You usually have 10 days to either pay what you owe or move out. 

If your landlord mixes in late fees (or other charges) along with unpaid rent in a Demand for Compliance or other notice, you should contact a lawyer as soon as possible. As of April 2026, courts in different counties have reached different decisions about whether an eviction filed based on a demand that includes both rent and late fees is legal. So consulting a lawyer as soon as possible is very important.

For more detailed information, see our guide on Demand for Compliance for Lease Violations and Repeat Violations.

Key takeaways

• Late fees are tightly limited by Colorado law.
• You cannot be evicted for not paying them.
• You have the right to challenge illegal fees.