Can a Landlord Deduct Late Fees from a Security Deposit?

Late fees are often tacked on to security deposit accounting. Whether they're allowed and enforceable depends on your lease and state rules, but you can still dispute incorrect or unsupported fees.

When the charge can be legitimate

• The lease clearly authorizes late fees and the payment was actually late
• Late fee amount matches the lease terms
• The landlord can show the ledger and due dates

Red flags

• Late fees not mentioned in the lease
• Fees charged when payment was on time (or within a grace period)
• Multiple late fees stacked without clear basis

What to ask for

• Lease clause for late fees
• Rent ledger showing due dates and payment dates
• Any notices the landlord sent about late rent

How to dispute

1. Request the lease clause and ledger proof.
2. Dispute any late fees not supported by the lease or dates.
3. Ask for correction and refund of the disputed amount.

Start with the dispute template, then escalate to a demand letter if the landlord won't correct it.