$75 NSF / returned check fee
$75 for a bounced check is on the high end but usually enforceable. Most states cap NSF fees at $25–$50 — check yours.
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What it actually means
Banks charge landlords $15–$35 for returned checks. The extra markup covers admin hassle and re-processing.
Some states cap landlord NSF fees. If $75 exceeds your state cap, only the capped amount is owed.
What it looks like in a lease
"In the event Tenant's check is returned for insufficient funds, Tenant shall pay an NSF fee of $75."
What to watch for
- State caps on NSF fees
- Whether it stacks with a late fee
How to negotiate it
If it exceeds state cap, cite the statute. Otherwise, just don't bounce checks.
When it crosses into a red flag
- Fee exceeds $100
- Stacks with late fee on the same missed payment
Frequently asked questions
Does this apply to ACH?
Usually yes — 'returned payment' covers electronic debits that fail, not just paper checks.
Related clauses
General information, not legal advice. Clauses are interpreted differently across states and courts. For a binding interpretation of your specific lease, consult a licensed attorney in your state.
