What is the top percentage you can charge for late commercial rent penalty in CA?
Asked on 12/05/19, 11:12 am
1 Answer from Attorneys
You cannot charge a penalty. Penalties are prohibited. What you can charge is in the nature of liquidated damages. So it must be a reasonable estimate of your out of pocket expense/loss due to late payment. With that said, 5% if contested is usually allowed. Over 10% is almost always rejected by the courts absent exceptional circumstances.
Answered on 12/05/19, 12:00 pm
