One day Grace period and Late Fees in Texas?

[David Chao]

When collecting rent from a tenant in Texas, I understand that Texas requires by law for there to be a mandatory one day grace period. The law states that you must give your tenant one full day after the date rent is due (rent is due on the 1st of the month in this example) before applying late charges.

Does that mean that the late charges can be applied if the rent is not received by 12:01 am on the 3rd day? In other words, my question is:  EXACTLY WHAT TIME ON WHICH DAY (2nd day, 3rd day, 4th day of the month) can / should late charges be applied? 

Thank you in advance!