I am trying to rent a house with friends for school. There was a late fee clause of $45 if payment was delayed >3 days. I tried to get it removed, but my friends (muslims) changed the contract to say they will pay it on my behalf if there is a delay. Is it correct that this is still haram?

Ustadh AbdulAziz al-Haqqan

If this is the case everywhere in the country and law enforces this on everybody then u have no choice. So, yes u can rent and just make sure not to be late.