What is the ruling on buying and renting out a residential apartment that incurs late payment penalties on its rent to the municipality, and these penalties cannot be waived?

It is not permissible to contractually agree to or accept late payment penalties on due debts, as these are precisely the usury of delay (riba an-nasi'ah) which is forbidden by Islamic law. As for late payment penalties related to essential government services (such as electricity, water, and gas), these do not prevent the purchase and rental of apartments, because hardship brings ease. However, one should be diligent in paying for these services on time to avoid the penalties.