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    Default Late Payment Penalty Provision In A Lease

    Hey guys.. thanks for reading. I have rented my downstairs to someone for 8 months now.. (two 6 month leases) The 2nd lease wasnt up until December. Back around March she lost her job and wanst able to make rent for 30 days. In my lease I stipulated 15/day for late rent... so she owed me 450.. but to be nice I took 10 days off and made it 300. I repeatedly asked for this month after month....and kept getting notes back (Ill have it for you tomorrow........... etc etc) but never got it. I desparately needed it as I had a turn off notice for my electric.... I gave her a note asking for it.. and got a reply that she would have it to me the next day.. never happened.... therefore the electric was turned off. A week later she totally moved out and sent me a letter saying her livabilty standards were broken and that I broke the lease.. in turn owing her the deposit (200) and the remaining 9 days in August (pro-rated) .... MINUS the late payment..... totaling I owe her 52 bucks.

    My question is that: Isnt the late payment added too the "rent" making her rent 825 every month?? (525+300). She states that she was up to date with her rent and that utilities were included in this.. but my point of view is that every month she owes me the normal rent plus the late fee... making it the "rent" for the month.

    In my lease its stated like this

    9. The Tenant will be charged an additional amount of $15.00 per day for any rental payments that are received after the latter of the due date and the expiration of any grace period under the Act, if any.

    Also states:

    43. All sums payable by the Tenant to the Landlord pursuant to any provision of this Lease will be deemed to be additional rent and will be recovered by the Landlord as rental arrears.

    Doesnt that provision cover me? I have the whole lease on a web page to copy/paste.. just didnt wanna post the whole thing in here... Private msg me or request it in your post and I can send you the whole thing.

    Thanks again and please ask any questions if you need more info.

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Late Penalty Provision In Lease

    The late penalty provision would be deemed excessive and thus unenforceable in many jurisdictions - that's something you should look into. Additionally, your remedy when a tenant doesn't pay rent is properly to evict the tenant, not to wait until you can't afford to pay the bills and put yourself at risk of being accused of constructive eviction by virtue of having utilities shut off.

    Make sure you comply with any notice provision in relation to the security deposit, as often the law will require return of the entire deposit if you fail to provide a proper notice or accounting.

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