Legal Question in Landlord & Tenant Law in California
We are signing a new one year lease with our landlord. He has a $4000 break-lease fee in it, which is more than double our monthly rent. Is that legal?
1 Answer from Attorneys
While the security deposit can not be greater than twice the monthly rental, it might not be illegal to charge more for a breach of the lease, but a court might very well limit the amount that can be collected to the actual damages the landlord suffers, namely how long it would reasonably take to re-rent the unit. Most judges in unlawful detainer cases award the landlord only one month's worth of rent. Since the potential damages are not difficult to calculate, the court would not consider the $4,000 to be a liquated damage amount even if the contract says it is, so the landlord might have a difficult time winning. See if you can negotiate the sum wlith the landlord, telling the landlord that you are willing to pay what damages he does suffer, but that sum is just too high and probably would not be accepted by a judge.
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