Current Legal Topics

mjbLAW consults a range of clients, both businesses and individuals, seeking legal assistance on a range of legal concerns.  The subjects discussed below provide an overview of those topics. 

 

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RENT IS DUE ON THE FIRST OF THE MONTH. NOT THE THIRD (OR THE FIFTH). YOUR “LATE FEES DON’T ACCRUE UNTIL THE THIRD (OR FIFTH)” CLAUSE HAS NOTHING TO DO WITH IT.

SUMMARY: Landlords and tenants alike frequently confuse when the rent is actually due. While many leases provide for assessment of late payment fees on either the third or the fifth of the month, rent is due on the first day of each month, period. Hence, if a tenant fails to pay on or before the first of the month, they are in breach of contract, breach of the lease agreement, and the landlord is not obligated to accept that untimely payment.

THE "NO WAIVER" CLAUSE: “THE LEASE SAYS THE RENT IS DUE ON THE FIRST, BUT THE LANDLORD HAS NEVER ENFORCED THAT.” THE MERE FACT THAT'S WHAT HAPPENED IN THE PAST DOESN’T MEAN THE LANDLORD CAN’T ENFORCE THE LEASE AS WRITTEN AT ANY TIME.

SUMMARY: It’s altogether commonplace for landlords to accept rent late – and sometimes very late. But there is a “No Waiver” clause in most leases – including the TAA Lease – that allows the landlord to insist on strict conformity with the lease at any time without regard to what the landlord may have done in the past. This allows a landlord to tighten its belt at any time.