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 Arkansas, the lease agreement is indeed a crucial document outlining the rights of tenants and the responsibilities of landlords. Arkansas law allows landlords to charge late fees, but these fees must be reasonable and are typically governed by the terms of the written lease agreement. The lease should clearly state the amount of the late fee, when it is assessed, and any grace period that is provided. Arkansas does not have a statutory limit on the amount of late fees that can be charged, but they must not be punitive and should reflect a reasonable estimate of the cost incurred by the landlord due to the late payment. The concept of an implied duty of good faith and fair dealing is recognized in Arkansas contract law, which means that landlords are expected to act fairly and not use late fees to penalize tenants excessively. For instance, charging a late fee for rent that is only an hour late without a specific provision in the lease stating such a requirement could be seen as a breach of this duty. Tenants should read their lease agreements carefully and may seek the advice of an attorney if they believe their landlord is not acting in good faith regarding late fees or any other lease provisions.