The current fees for late payment charges of the residential tenancies act are:

• A. No charge for late payments.
• B. $5 for the first day, then $2 per day; max $50.
• C. $20 for the first day, then $5 per day; max $200.
• D. $10 for the first day, $1 for each day after, to a maximum of $100.

Answer: (D)

Late payment penalties are designed to be fair and predictable, not punitive. The act allows a landlord to charge a late fee only in a structured way: a fixed amount for the first day a payment is late, plus a small daily charge for each additional day, with a maximum total cap. The example that fits this approach is charging ten dollars for the first day, then one dollar for each subsequent day, up to a maximum of one hundred dollars. This keeps the penalty reasonable and enforceable, while still encouraging timely rent. Other schemes that impose higher upfront charges, larger daily amounts, or no cap don’t align with the typical allowable structure and can be less fair or harder to enforce.