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NJ Grace Period Vs. Late Payment - Landlord Forum thread 237750

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NJ Grace Period Vs. Late Payment by NJLL (NJ) on October 18, 2011 @15:33

I can't figure this out and I also can't find any info on it in the law.

I'm in NJ and I have a 5 day grace period in my lease before I charge a late fee. Rent is due on the 15th.

My tenants have only been here 2 months. The first month they paid on the 26th and the 2nd month (this month), I am supposed to get the check today.

Here is my question: Is the rent considered legally late as of the 16th or not until the 5 day grace period is over? I imagine this is a NJ law issue but I can't find it. I gave them a pay or quit notice today and they are screaming foul because they said the law gives them 5 days. Which would be stupid because then it would mean the due date means nothing. I thought it would be late as of the 16th and that the grace period only applies to late fees.

Thanks for any help.

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Re: NJ Grace Period Vs. Late Payment by NJLL (NJ) on October 18, 2011 @15:37 [ Reply ]
Forgot to mention that this is what the lease says:

Rent is due on the 15th day of the month. Landlord allows a five (5) day grace period for receipt of rent as allowed by applicable New Jersey law. After the 20th day of the month, a delinquency charge of $50. This late charge provision, however, shall in no way restrict Landlordís option to declare a default and proceed as otherwise provided for herein.

Maybe the problem is my lease isn't clear enough on the issue.
Re: NJ Grace Period Vs. Late Payment by Bryan (Ia) on October 18, 2011 @15:43 [ Reply ]
Rent is late the day after it is due. Grace period is only for not charging the late fee.
Re: NJ Grace Period Vs. Late Payment by Anonymous on October 18, 2011 @17:34 [ Reply ]
Good advice given. I'll add to that -- don't offer a grace period unless NJ law demands it. Grace periods tend to confuse tenants like yours has, tenant comes to believe that because there is no penalty, the rent is not late; that's completely wrong -- the rent is late the day after it is due regardless of grace periods. Grace periods just determine when a penalty attaches. And in 15 years of LLing, I've never seen a tenant NOT abuse the grace period, so I stopped allowing it a few years ago and now 98% of my tenants pay on or before the due date and the others pay the LF. I warn everyone at sign-up that they have to mail it 2 days in advance so it arrives on the due date or hand-deliver up to midnight on the due date. P/Q notices are posted at 6:30 a.m. on the 2nd.
Re: NJ Grace Period Vs. Late Payment by MrDan (Georgia) on October 18, 2011 @18:24 [ Reply ]
Perhaps this will clear up the confusion over grace period.


An Act concerning the five-day grace period for the payment of rent by certain renters and amending P.L.1976, c.100.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1976, c.100 (C.2A:42-6.1) is amended to read as follows:

C.2A:42-6.1 Grace period for payment of rent.

1. A person to whom rent is due and payable on the first of the month upon a lease or other agreement shall allow a period of five business days grace in which the rent due shall be paid. No delinquency or other late charge shall be made which includes the grace period of five business days.

As used in this section, "business day" means any day other than a Saturday, Sunday or State or federal holiday.

2. Section 3 of P.L.1976, c.100 (C.2A:42-6.3) is amended to read as follows:

C.2A:42-6.3 Applicability of act.

3. The provisions of this act shall only be applicable to premises rented or leased by senior citizens receiving Social Security Old Age Pensions, Railroad Retirement Pensions or other governmental pensions in lieu of Social Security Old Age Pensions, and by recipients of Social Security Disability Benefits, Supplemental Security Income or benefits under Work First New Jersey.

3. This act shall take effect immediately.

Approved July 10, 2001.

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