One-Time Fees

A landlord may ask for payments in the lease that are one-time, non-refundable payments. The lease should make it very clear that such payments are not part of the security deposit and are non-refundable. Any payment which is refundable becomes part of the security deposit and subject to detailed rules.

The lease may also include terms that impose additional fees on a tenant if certain events take place. The most common example would be the late payment of rent. These fees are legal, but they cannot impose a penalty that is much higher than the degree of loss suffered by the landlord.

It is up to the tenant whether or not they want to accept terms in the lease involving extra fees and penalty payments. They could choose to try to negotiate different terms with you as the landlord, accept the terms, or, find other accommodation. The landlord should provide a receipt for any fees that a tenant pays.

May 2006