In Arizona, what limitation exists for late fees on rent?

In Arizona, late fees on rent must be reasonable and specified in the lease agreement. This means that landlords are required to clearly outline the terms regarding late fees within the lease, including the amount that will be charged and the conditions under which it will be applied. By ensuring that late fees are reasonable, the law protects tenants from excessive charges that could be deemed punitive or unjust. This requirement fosters transparency and allows tenants to understand the potential financial implications of late payments before they occur.

A limitation against arbitrary fees promotes fairness in landlord-tenant relationships and ensures that all parties have a mutual understanding of lease terms regarding payment timelines and associated penalties. This framework aims to balance the interests of both landlords wanting to receive timely payments and tenants who might sometimes encounter difficulties meeting those deadlines.