Late charges

Many leases require a late charge if the rent is not paid by a certain date of the month. This charge is supposed to cover the money lost by the landlord as a result of the late payment. Courts will enforce late charges if they are reasonable and spelled out in writing in the lease. The landlord cannot evict based upon nonpayment of late charges unless there is an agreement stating that late charges are to be considered part of the “rent.” Cite: 447 Associates v. Miranda, 115 N.J. 522 (1989). In Section 8 housing, a landlord cannot sue to evict for nonpayment of late charges whether they are called rent or not. See Community Realty Management Company v. Harris, 155 N.J. 212 (1998). Similarly, a public housing authority cannot evict for nonpayment of late charges even if they are called rent. Cite: Housing Authority of the City of Atlantic City v. Taylor, 171 N.J. 580 (2002); Hodges v. Feinstein, 189 N.J. 210 (2007).
Late charges are also not allowed if the tenant did not pay the rent on time because the landlord failed to make needed repairs. Under the Anti-Eviction Act, a tenant who repeatedly pays rent after its due date can be sued for eviction provided that the landlord gives the tenant proper notices. See Chapter 9, The Causes for Eviction. In addition, there is a new law that states when rent must be paid and when landlords can charge a late fee. This statute does not apply to all tenants. It applies only to apartments rented by senior citizens receiving Social Security Old Age Pensions, Railroad Retirement Pensions, or other government pensions in the place of Social Security Old Age Pensions, and by recipients of Social Security Disability Benefits, Supplemental Security Income (SSI), or welfare benefits under Work First New Jersey. Cite: N.J.S.A. 2A: 42-6.1 and 6.3.
The law states that a landlord must allow a tenant a period of “five business grace days” to pay the rent. If a tenant pays the rent in the five-day period, the landlord may not charge a late fee. In counting the five business days, do not include Saturday, Sunday, or a national or state holiday.
If the landlord knows, or should know, that your monthly income regularly does not arrive by a certain day, he should pick a later date that is fair to both of you.
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