Legal Question in Real Estate Law in Colorado

Re: rental late fee

Morning,

The rules require that the late fee is "reasonable." There is no specific % stated as to what is reasonable or not reasonable.

As a general matter, it is left to the court to determine if the amount is excessive. A rough rule of thumb is that a fee much above 5% or so is likely excessive and the court could deny any claims above that amount or toss the entire amount.

I would contact a real estate attorney for an appropriate lease agreement. Good luck.