Hold Over Clause

[concerned1977]

What is the name of your state (only U.S. law)? va

I was reading section § 55-248.37 of the viriginia code and was hoping that I could get some clarification on something. The section (part B) states as follows:


... The landlord may include in the rental agreement a reasonable liquidated damage penalty, not to exceed an amount equal to 150 percent of the per diem of the monthly rent, for each day the tenant remains in the dwelling unit after the termination date specified in the landlord's notice. [/B]

Does this mean that if the typical monthly rent is $1400 I can charge a daily or monthly rate of 1.5 x $1400 ($2100)? Also, is this in addition to the monthly rent or including the monthly rent?

I want to put this information in the lease agreement so i want to make sure I get it right.

Thanks.

 

[Andy0192]

I'm not an attorney or in VA, but the way I read that, you could charge up to 150% of the per diem rate.... so take your $1400 / 30 days = $46.67 per day x 1.5 =$70 per day penalty.

Now, I still don't have a clear idea on the other parts of your question... but I think you're asking some good questions. I'd want to tack that on as a penalty over & above the monthly rent....

 

[concerned1977]

I'm not an attorney or in VA, but the way I read that, you could charge up to 150% of the per diem rate.... so take your $1400 / 30 days = $46.67 per day x 1.5 =$70 per day penalty.

Now, I still don't have a clear idea on the other parts of your question... but I think you're asking some good questions. I'd want to tack that on as a penalty over & above the monthly rent....

That's what I originally ready in to it too, but then I started to think about how it says "...not to exceed an amount equal to 150 percent of the per diem of the monthly rent, for each day the tenant remains in the dwelling...". so I started to doubt my undertanding of it.

 

[atomizer]

Virginia's Residential Landlord and Tenant Act is unique. Before you proceed you ought to find out if it even applies to you.

 

[concerned1977]

Vrlta

Thanks Atomizer - you're right, because I only own 1 property the VRLTA doesn't apply to me. I took a look at our local county handbook for tenants and landlords and it also says that it doesn't apply (because I only have the one rental property). However they both state that as long as the contract states that the VRLTA applies to the lease agreement then it will be applicable. or according to the county handbook "If your rental agreement is not governed by the VRLTA, your tenant's/ landlord's rights and responsibilities are governed by the rental agreement".

If i decide to put the statement in the contract that VRLTA does apply then how should I interpret my earlier question about the holdover clause? Can I charge 150% penalty per day and would it be in addition to or does it include the typicaly daily prorated rate? or does anyone have an opinion as to what a more reasonable holdover penalty should be?

Thanks for your help.

 

[atomizer]

See Andy's response.

Also, speak to an attorney about what you want to do. It may not work in your best interest to go under VRLTA.

 

[acmb05]

If i decide to put the statement in the contract that VRLTA does apply then how should I interpret my earlier question about the holdover clause? Can I charge 150% penalty per day and would it be in addition to or does it include the typicaly daily prorated rate? or does anyone have an opinion as to what a more reasonable holdover penalty should be?

Thanks for your help.

If you have the hold over clause in your lease and you used the above example what it means is you could charge the tenant the $70 per day that they stay there after the lease term is up. This is NOT tacked onto the normal rent amount whether it be the monthly amount or the per diem. amount.

So lets use that example. Your daily rate would be 46.67 per day. You can't charge that and the $70. You just simply charge the $70. What it means is you can collect the daily rate plus another 50 percent which come out to 1.5 times the normal rate.

 

[concerned1977]

Thanks

Thanks for all the replies and clarification.