[RPPTL LandTen] Early Termination Fee/Liquidated Damages

Fri Jun 5 06:11:46 PDT 2020

I think bad check fee is a bad idea for a covered property because it could be considered a penalty or "other charge" related to the non-payment of rent, however I don't believe early termination fees would be a problem because early termination fees are not  "fees, penalties, or other charges...related to such nonpayment of rent"
 They are contractually fixed liquidated damages for the early termination of the lease which are expressly authorized by statute.

Notwithstanding the above, absent a lawsuit or claim on the deposit, I don't see how one could attempt to collect the early termination fee without treading on very thin ice.

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On Jun 4, 2020 6:12 PM, Harry Heist <harry at evict.com> wrote:

On CARES covered properties, what is your opinion on the Early Termination Fee/Liquidated Damages?

How about bad check fees?

Legal or not?

(b) Moratorium.-During the 120-day period beginning on the date of enactment of this Act, the lessor of a covered dwelling may not-

(1) make, or cause to be made, any filing with the court of jurisdiction to initiate a legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent or other fees or charges; or

(2) charge fees, penalties, or other charges to the tenant related to such nonpayment of rent.

(c) Notice.-The lessor of a covered dwelling unit-

(1) may not require the tenant to vacate the covered dwelling unit before the date that is 30 days after the date on which the lessor provides the tenant with a notice to vacate; and

(2) may not issue a notice to vacate under paragraph (1) until after the expiration of the period described in subsection (b).

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