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Penalty clause in lease for late payment of rent

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  • 04-07-2015 8:31am
    #1
    monkey8
    Registered Users Posts: 386 ✭✭


    I have a penalty clause in place in a lease I have with my tenants of €20 per day that the rent is late.
    Its the last month of tenancy and it looks like they are not paying the last months rent in lieu of the deposit even though its explicitly stated in the lease that this is not allowed.
    Is the penalty clause enforcable?
    I mean, I know it is enforceable as it is covered under contract law but, poractically is it something that I would be successful pursuing?


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    #2
    bren2002
    Registered Users Posts: 1,199 ✭✭✭bren2002


    I would say no chance. I'm fairlybsure financial penalties are unenforceable outside of state fines.


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    #3
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    You need to issue them with a 14 day notice of arrears. It might not do you much good but it will work in your favour should you need to take a PRTB case


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    #4
    bren2002
    Registered Users Posts: 1,199 ✭✭✭bren2002


    Still wont be able to fine them €20 pd though.


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    #5
    Mrs OBumble
    Registered Users Posts: 25,967 ✭✭✭✭Mrs OBumble


    By the end of the month, they will owe you E620. How much would it cost you too chase them for this amount? Yes you can go to the PSTB - but even a judgement from them won't actually get the cash into your hands.


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    #6
    the_syco
    Registered Users Posts: 37,301 ✭✭✭✭the_syco


    monkey8 wrote: »
    Its the last month of tenancy and it looks like they are not paying the last months rent in lieu of the deposit even though its explicitly stated in the lease that this is not allowed.
    Ask them if you can pop over to check the house out. If it's fine, it may be best to cut you loses with them. If there is damage, or they don't allow you to look at your house, let them know that you'll chase them all for any damages (which is usually only caused by one of them)?


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    #7
    Victor
    Registered Users Posts: 78,423 ✭✭✭✭Victor


    monkey8 wrote: »
    I have a penalty clause in place in a lease I have with my tenants of €20 per day that the rent is late.
    Such a structure is designed to punish late payers. Punishment is not for a contract party to impose - that's for the courts.

    You would be better off structuring it as liquidated damages, reflecting actually costs, e.g. bank interest and the administration costs of issuing the late rent letter.


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