The most important source of information about a residential tenant’s rights and a landlord’s responsibilities is the written lease agreement. Some landlords prefer oral agreements, but it is more common for them to require the tenant's signature on a written lease—and a written lease protects the tenant more than an oral agreement. Be sure to read the lease carefully before you sign it.

A residential landlord’s ability to charge late fees generally depends on the specific language in the written lease agreement; the state’s landlord-tenant laws that may limit the amount of late fees the landlord can charge and the circumstances in which they can be charged; and the state's contract law.

Contract law in most states recognizes an implied duty of good faith and fair dealing between parties to a contract, and a residential landlord who charges late fees because the tenant is an hour late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing—unless, for example, the lease agreement specifies an hour (12:00 p.m.) of the day by which rent is due and states that time is of the essence.

In Rhode Island, the lease agreement is indeed a crucial document for outlining the rights of tenants and the responsibilities of landlords. A written lease provides clarity and legal protection for both parties more so than an oral agreement. Tenants should thoroughly review the lease before signing to understand their obligations and the terms of their tenancy. Regarding late fees, Rhode Island law (Rhode Island General Laws Section 34-18-15) stipulates that landlords can charge late fees only if it is specified in the lease agreement. The amount and conditions under which late fees can be imposed should be clearly stated in the lease. Additionally, Rhode Island recognizes the implied covenant of good faith and fair dealing in contracts, which means that landlords are expected to act fairly and not exploit the timing of rent payments to impose unreasonable late fees. If a lease specifies a particular time by which rent must be paid and emphasizes that time is of the essence, then a landlord may be justified in charging a late fee for rent paid past that time. However, such terms must be reasonable and clearly articulated in the lease to be enforceable.