INSIDER's Pop Quiz!

Q: HUD says you may charge late fees to households that don’t pay their rent by the end of the fifth day of the month, but HUD limits the total late fee you may charge in any one month to:

a. $25

b. $30

c. $50

d. $60

A: The correct answer is b: $30. HUD says that you may charge up to $5 as an initial fee on the sixth day of the month plus $1 for each additional day the household still hasn’t paid the rent. You may ask your local HUD office to approve an initial late fee higher than $5, but the total late fee you charge in any one month can’t exceed $30.

For more about what extra fees you can—and can’t—charge households, see “What Extra Fees Are Allowed for Items or Services,” available to subscribers here.