How much amount can the landlord charge as late fee for unpaid rent if the rent is less than 700 dollars?

Full question:

I couldn’t pay the rent for the last month. So I owe my landlord 450 dollars as rent, which is already a big amount for me. The landlord now wants me to pay him a late fee of 20 dollars per day. I find this amount a bit too much for late rent penalty. What is the law on late fee in case of unpaid rent in Iowa?

• Category: Landlord Tenant
• Subcategory: Late Fees
• Date: 04/07/2025
• State: Iowa

Answer:

In this case, your landlord cannot ask you a late fee more than 12 dollars per day as your rent is below 700 dollars per month. In Iowa, if the rent amount is less than 700 dollars then the landlord cannot charge late fee more than 12 dollars per day or a total amount of 60 dollars per month.

Iowa Code § 562A.9 says:

“4. For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month. For rental agreements in which the rent is greater than seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.”