Late Rent and NSF Fees in Newfoundland and Labrador

Section 15(1) of the Residential Tenancies Act, 2018 (SNL2018 c R-14.2) says that where a tenant does not pay rent for a rental period within the time stated in the rental agreement, the landlord may charge a late payment fee in an amount set by the minister. The Act does not state the dollar amount.

The amount appears in the Residential Tenancies Office policies. Policy 02-004 on deposits, payments and fees (revised August 2021) gives a late fee of $5.00 for the first day rent is in arrears and $2.00 for each additional day it remains in arrears, up to a maximum of $75.00. Policy 07-007 on failure to pay rent gives the same figures. Those are policy figures, so check the official page for the current amount. The sources reviewed did not turn up a ministerial order or regulation stating the amounts, so the policy is the source to cite.

The Act does not require the late fee to be written in your lease. The lease fixes when rent is due, and the fee follows from that. The Standard Rental Agreement itself contains no late fee text. If rent is due on the 1st and your agreement states no time, Policy 07-007 says it is not overdue until the second day of the month.

The policy gives no table. The figures below are simple arithmetic from its numbers: $5.00 for day one, then $2.00 for each further day, capped at $75.00. They assume the rent stays unpaid and you charge the full amount allowed.

The maximum is reached on day 36 by this arithmetic. The fee does not grow past $75.00.

Section 15(2) covers a cheque for rent returned to the landlord by a financial institution because of insufficient funds. You may charge the tenant a fee in the same amount as the fee the institution charged you. So the fee is your real cost passed on: if your bank charged you a set fee, you may pass on that figure, not more. The sources reviewed state no cap other than that rule.

The section speaks of a cheque. The sources reviewed do not say how it applies to other payment methods, so ask the Residential Tenancies Office if the tenant pays another way. Keep your bank's notice showing the fee you were charged.

The sources reviewed do not say how the NSF fee and the late fee interact when both could apply. Ask the Residential Tenancies Office before you charge both.

One important limit. Under section 7(4), if you have not given the tenant a copy of the written rental agreement, or written notice of the terms of an oral one, the tenant's duty to pay rent is suspended until you comply, and the Residential Tenancies Office's Policy 02-002 says you cannot charge a late fee in that situation. This applies if you have not given the copy or notice within 10 days of the agreement (section 7(2) and (3)). Once you comply, the withheld rent becomes payable (section 7(5)). Policy 02-002 on the written agreement requirement says plainly that a landlord cannot charge late fees in this situation. Give the tenant the agreement and keep proof you did.

Two other rules for the lease: a tenant cannot be required to prepay the last week's or last month's rent, or to make one payment larger than any other regular payment (section 12(1)). Post-dated payment methods are permitted (section 12(2)).

Section 19 is the landlord's notice for overdue rent. For month-to-month, fixed-term and mobile home site tenancies, once rent is overdue for 5 days or more you may give a termination notice with a date not less than 10 days after the notice is served. For week-to-week tenancies, once rent is overdue 3 days or more, the date must be not less than 3 days after the notice is served. Policy 07-007 gives an example: for month-to-month rent due on the 1st, the overdue days are the 2nd to the 6th, so the earliest notice is on the 7th. Section 19(5) gives not less than 30 days to a tenant who lost income because of the Public Health Emergency declared on March 18, 2020 and gives proof; confirm with the Residential Tenancies Office whether it still applies.

The notice is cancelled if the tenant pays the full overdue rent, including any section 15 fee, before the date in the notice (section 19(2)). That cure does not apply if you have given notice more than twice in a 12 month period (section 19(3)).

There is no "persistent late payment" rule in the Act by that name. The repeat-lateness mechanism is the section 19 notice together with the section 19(3) limit on curing. The notice must be signed by you, state the date, and be served under section 35. The form is the Landlord's Notice to Terminate Early (Cause), RT-2018-00040 (form), with section 19 indicated. Registered mail or express post is treated as served on the 5th day after mailing. Electronic service works only if the tenant has given an electronic address for receiving documents. Sent by 4 p.m. it is served that day; sent after 4 p.m., it is served the next day that is not a Saturday or holiday (section 35).

1. State the due date in the lease and give the tenant the signed copy.
2. When rent is late, charge only the policy amount, and keep a dated record.
3. If rent reaches 5 days overdue (3 for week-to-week) and you want to end the tenancy, serve the section 19 notice on the right form.
4. If the tenant stays, you may apply to the director under section 42 using the Application for Dispute Resolution, RT-2018-00053 (form), within one year after the tenancy ends.

For the whole process of unpaid rent, read tenant not paying rent in Newfoundland and Labrador and ending a tenancy with notice. For tenant-side context see ending a tenancy: notice rules. The general page what to do if a tenant doesn't pay rent is not specific to this province.

Do not charge a fee the sources do not support, and never withhold services or change locks over late rent. This guide explains the rules in general terms; for a specific case, ask the tribunal or a licensed legal professional.