Articles Tagged with Rent

Landlords Beware: Residential Form Leases Do Not Cure All Ills

The word “lease” is a fancy term for a simple agreement: The tenant agrees to pay rent and the landlord agrees to provide a habitable living space. Some leases are lengthy and contain conflicting terms which affect both the landlord’s and the tenant’s rights. In a landlord-tenant case, the court will look at the content of a lease very closely. This is where Google causes more problems than it solves. Free form leases from the internet can be dangerous.

Form residential leases are all over the internet for free. Like most things, if it’s free its too good to be true. For landlords, a free form lease can cost money further down the line. This is especially true if the case goes to landlord-tenant court.

Form leases, by nature, are generic; generic leases can work in as many states as possible. Form leases do not apply relevant New Jersey law and some provisions that protect landlord may be void and inapplicable. Even form leases claiming to be customized for New Jersey may not meet for formal requirements set forth in the law.
The common problems with form leases often relate to two issues: 1) attorney’s fees in connection to litigation and 2) late fees. For example, most form leases have the following attorney’s fee clause:
ATTORNEY’S FEES: In the event that any action is filed in relation to this Lease, the unsuccessful party in the action will pay to the successful party, in addition to all the sums that either party may be called on the pay a reasonable sum for the successful party’s attorney’s fees.
The paragraph seems to say that if landlord sues a tenant, or vice versa, the losing party would pay the attorney’s fees of the winning party. Remember, court hearings for evictions, are considered “legal actions.” Contrary to the plain meaning of the attorney’s fee clause, absent very specific language, attorney’s fee clauses are unenforceable.
Many form leases have following late fee clause:
LATE CHARGE: A late fee of $________ shall be added and due for any payment of rent made after the _______ day of the month.
Even if the clause meets the formal requirements of New Jersey law, a late fee clause may be deemed unenforceable by a court if the late fee is found to be “unreasonable.” Be sure to take care when filling the blanks of the late charge clause on a form lease.
Landlords should take care by having their leases reviewed by an attorney. Offit Kurman practices landlord tenant law throughout New York and New Jersey assisting landlords and tenants in avoiding unnecessary and costly delays. The firm’s geographic practice area includes: New Jersey (Jersey City, Hoboken, Bayonne, Hudson County, Newark, Essex County, Woodbridge, Middlesex County, Paterson, Passaic County). The Firm invites you to visit the “Promises” page for our new way of doing business Continue Reading ›

New Jersey’s Security Deposit Law, N.J.S.A. 46:8-21.1, requires strict compliance by Landlords. The law’s most rigid requirement is the timing of the return of the deposit. As soon as a tenancy ends, a landlord should be prepared to follow the precise letter of the law. Even an honest mistake can lead to an award of double the security deposit and attorney’s fee’s against the landlord.
Continue Reading ›

New Jersey’s Security Deposit Law (NJSA 46:8-19) is one of the more tenant-friendly security deposit laws in the US. The Law requires strict compliance (almost to the letter) with each of its parts. Failing to follow the law, in detail, can expose a Landlord to a penalty of double the security deposit and attorney’s fees. Landlords and Tenants should be aware of the most common area of noncompliance: Unauthorized deductions.
Continue Reading ›

A prior post explained that under the Anti-Eviction Act rent increases are subject to a five-part test. Even though landlord-tenant trials can be simple and speedy, the Rules of Evidence still apply. Landlords must present competent evidence supporting their right to a rent increase. The types of evidence may vary, but should generally be in line with evidence offered in Fromet Properties, Inc. vs. Delores Buel, et al, 294 N.J. Super. 601 (App. Div. 1996).
Continue Reading ›

Anti-Eviction tenancies are subject to rent increase on notice. This means a landlord must serve a tenant notice increasing the rent for the subsequent tenancy. But, simply serving the notice as required by the Anti-Eviction Act doesn’t mean that the rent increase is legal. For a rent increase to be legal it must not unconscionable. Whether a rent increase is unconscionable turns on a five-part test.
Continue Reading ›

The Jersey City Rent Control Ordinance requires landlords to provide new tenants with specific information. At the start of each new tenancy a landlord must provide a tenant with a “rental statement” that informs of the tenant of “rent of the prior tenant and notification of the existence of the rent registration law.” The point is pretty simple: If a new tenant finds out her rent is three times what the old tenant paid, she’s more likely to question the legality of the rent. An interesting question presented itself a few weeks ago: What if the owner was the “prior tenant?” What notice is a tenant occupying an apartment after the owner entitled to?
Continue Reading ›

Northern New Jersey cities like Hoboken and Jersey City maintain sophisticated rent control ordinances. Rent control ordinances are designed to provide landlord’s a “fair” return on investment while keeping urban housing rents affordable. When a tenant is charged an illegal rent (a rent in excess of what rent control ordinance provides) most ordinances require a landlord to give the tenant a credit towards future rent. The credit is the amount of the overcharge per month for as many months as the tenant was overcharged. But, the time length of the overcharge is not unlimited. Jersey City and Hoboken have two very different approaches to determining the amount of a rent control overcharge. The distinction lies in the difference between a statute of limitation and a statute of repose.
Continue Reading ›

Local rent control laws are an important part of maintaining an affordable housing supply in densely populated areas. Prior posts explained the basics of rent control and some nuances between cities. Generally, tenants who pay rent in excess of the rent control rent (the “legal rent”) have two remedies. The first is an application to the local rent control board (sometimes called a rent leveling board) for a credit. The credit allows a tenant to pay a reduced rent going forward until the tenant “catches up” with the overcharge. The second remedy is much more powerful. Violations of rent control ordinances are actionable under the New Jersey Consumer Fraud Act (the “CFA”). Under the CFA, a rent control overcharge may entitle a tenant to triple damages and mandatory attorney’s fees. The principle that a rent control violation is also a consumer fraud violation comes from an Appellate Division decision called Wozniak v. Pennella, 373 N.J. Super. 445 (App. Div. 2004).
Continue Reading ›

Rent-control ordinances across New Jersey control the legal rent a landlord is entitled to from each rental unit. Most rent-control ordinances provide landlords an opportunity to raise the rent between tenants. As noted in a prior post, Jersey City’s rent-control ordinance does not provide for such “vacancy decontrol.” The absence of vacancy decontrol raises interesting questions in the context of eviction for nonpayment proceedings. To what extent must a landlord show compliance with rent control when alleging a tenant failed to pay rent “due and owing?” If the Landlord can’t show compliance with rent control should the complaint be dismissed? These questions came up in a case in Hudson County a short time ago. The outcome has important implications for tenants and landlords across New Jersey.
Continue Reading ›

New Jersey is one of only four states that provide for rent control. Jersey City is one of 98 municipalities that enacted local rent-control laws. While Hoboken and Bayonne recently relaxed their rent-control ordinances, Jersey City maintains one of the State’s strongest rent-control laws. Jersey City tenants should aware of the most important part of Jersey City’s rent-control laws.
Continue Reading ›

Contact Information