Is it legal to put a daily penalty?

Question

Aidan Mulligan · Answer

I wouldn't say obviously, many contracts have a conversion to month to month after lease term ends written in the contract. In that case the original contract would still hold true.

Google:

B. N.J.S.A. 2A:42-5. Holding over by tenant after giving notice of quitting; double rent recoverable. If a tenant of real estate shall give notice of his intention to quit the premises by him held at a time specified in such notice, and shall not deliver up the possession of such real estate at the time specified in the notice, such tenant, his executors or administrators, shall, from such time, pay to his landlord or lessor, his heirs or assigns, double the rent which he should otherwise have paid, to be levied, sued for and recovered at the same times and in the same manner as the single rent before the giving of such notice could be levied, sued for and recovered. Such double rent shall continue to be paid during all the time such tenant shall continue in possession after the giving of such notice.

Laymans: You can charge double the rent for the month total. If you wanted to do daily, then divide it by the number of days. ($500 Rent * 2) / 31 Days = 32.26/day

Disclosure: I'm not a lawyer,

Here is in my personal lease where I live

"6.1.4 You shall pay Landlord an amount equal to the then existing Monthly Base Rent (without concession), prorated by the day for each day in Hold Over and beyond the termination, non-renewal or expiration of this Lease, in addition to any other damages.

6.2 If Your Hold Over prevents a new resident from occupying the Apartment, You may also be liable to Landlord for all rent for the new resident’s full lease term, subject to Landlord’s obligation, if any, to mitigate damages."

In NC my landlord will charge me a months rate prorated to the day + any rents prorated to the day that I stop them from collecting from someone else who could live there. So essentially double a months rent.

Aidan Mulligan · Answer

1) Depends on where you are, every state is different

2) If it is legal in your state it must be in the leasing contract, you can't amend a contract after the fact

Aidan Mulligan · Answer

And to be honest, I had to read that legal paragraph three times before I could pull out the actual meaning.

Is it legal to put a daily penalty?

Most Popular Reply