Are Late Fees and Junk Fees Legal in California Rentals?

Late fees, convenience fees, processing fees: California renters increasingly search for what landlords can lawfully charge, and the legislature has been busy answering. This article covers late fees and the newer junk fee rules as general legal information, not legal advice.

Are late fees legal in California?

A late fee is enforceable only if it is a valid liquidated damages provision under Civil Code section 1671. That means the parties agreed to it in the lease and the amount is a reasonable estimate of the landlord's actual costs from a late payment, which are usually modest. Courts can strike down penalty-sized fees, and a pattern of inflated late fees can expose a landlord to claims. A fee that is a large percentage of monthly rent, or that compounds daily without connection to real costs, is legally vulnerable.

Can my landlord charge a fee for paying rent by check?

No. Under SB 611, landlords may not charge a fee for paying rent or a security deposit by check. The same law requires clear written disclosure of fees and gives extra security deposit protections to military servicemembers, who cannot be charged a higher deposit than advertised without a written explanation and a refund schedule.

What about application fees and other move-in charges?

Application screening fees are capped by statute and must reflect actual out-of-pocket screening costs, with a receipt on request. Security deposits are capped at one month of rent for most landlords under AB 12, and since AB 2801, deposit deductions must be supported by photographs taken at move-out before and after any repairs or cleaning. Starting in 2026, new state rules also push mandatory charges into the advertised price so renters can compare listings honestly.

What should I do about a fee that looks illegal?

Ask for the fee's basis in writing and compare it to your lease. Do not withhold base rent over a fee dispute without advice, since nonpayment notices move fast in California. Keep ledgers, receipts, and every notice. If inflated fees are being used to build a case for eviction or to pad deposit deductions, that pattern matters legally. Baghikian Law reviews rent ledgers and fee disputes for tenants and landlords across Los Angeles and the San Fernando Valley.