New Jersey sets no general statutory cap on residential late fees, leaving the amount to the lease subject to reasonableness. For senior citizens on government pensions and recipients of Social Security Disability, SSI, or Work First New Jersey, N.J.S.A. 2A:42-6.1 requires a five-business-day grace period during which no late charge may be imposed.
There is no statutory requirement capping late fees for tenants generally in New Jersey; a late fee must be set in the lease and be reasonable. A protected grace period does exist for certain tenants. N.J.S.A. 2A:42-6.1 provides that a person to whom rent is due on the first of the month "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." A "business day" excludes Saturdays, Sundays, and holidays. Under N.J.S.A. 2A:42-6.3 this applies only to senior citizens on Social Security old-age, railroad, or like government pensions, and recipients of Social Security Disability, SSI, or Work First New Jersey benefits.
Under N.J.S.A. 2A:42-6.2, a landlord who charges a late fee within the protected five-business-day grace period for a covered senior or benefit recipient "shall be a disorderly person," exposing the landlord to disorderly-persons penalties.
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