Kentucky late rent fee: the legal maximum
Kentucky sets no statutory cap on late fees. The amount is whatever the lease says, subject to the general rule that it must not be an unconscionable penalty. There is no statutory grace period, so the lease controls when the fee starts.
Reference: 5% of rent at common rents
Kentucky has no cap. Five percent of monthly rent is the most common lease figure and the statutory cap in several other states; it is shown for comparison only.
| Monthly rent | 5% reference |
|---|---|
| $1,000.00 | $50.00 |
| $1,500.00 | $75.00 |
| $2,000.00 | $100.00 |
| $3,000.00 | $150.00 |
What the statute says
No statutory cap or grace period. KRS 383.565 (terms of rental agreement) says nothing about late fees; some secondary sites claim a 10%/5-day rule under 383.565, which is not in the statute text. Fees are governed by the lease and general reasonableness.
How this applies in practice
- A late fee must be written into the lease. The statute constrains what the lease may say; it does not create a fee on its own.
- With no statutory grace period, the lease decides when the fee starts; many leases allow three to five days.
- Courts treat a late fee as liquidated damages: it must approximate the landlord’s real cost of late payment. Fees far above 5% of rent, or that compound daily without limit, are the ones that get struck down.
- Late fees are separate from interest on unpaid rent and from eviction filing costs, which have their own rules.
Related Kentucky rules
- Pay-or-quit notice: 7 days. Notice periods in Kentucky.
- Security deposit: No statutory limit; returned No fixed statutory return deadline. Landlord must inspect and give an itemized damage list at move-out; if a refund is due the landlord must notify the tenant at the last known address, and if the tenant does not respond within 60 days the landlord may keep the deposit. If the tenant leaves owing rent and makes no demand, the landlord may apply the deposit after 30 days.. Deposit rules in Kentucky.
- All rules on one page: Kentucky landlord and tenant law.
Frequently asked questions
What is the maximum late fee for rent in Kentucky?
There is no statutory maximum in Kentucky. No statutory cap or grace period. KRS 383.565 (terms of rental agreement) says nothing about late fees; some secondary sites claim a 10%/5-day rule under 383.565, which is not in the statute text. Fees are governed by the lease and general reasonableness. The most common lease figure nationally is 5% of monthly rent, and courts in no-cap states generally accept fees in that range while rejecting ones that look like penalties.
Is there a grace period for rent in Kentucky?
Not by statute. The lease may set one; if it is silent, a fee can be charged the day after the due date.
Can a Kentucky landlord charge a daily late fee?
Nothing in state law forbids it, but the total must remain reasonable. A daily fee that quickly exceeds a few percent of rent risks being struck down as a penalty.
Can a landlord charge a late fee that is not in the lease in Kentucky?
No. A late fee is a contract term. If the lease does not provide for one, the landlord cannot impose it, and in Kentucky the statutory reasonableness standard applies on top of whatever the lease says.