Rent Control and “Additional Rent”: A Key Limitation for Landlords

In many eviction actions for non-payment of rent, landlords can include charges such as late fees and legal fees in the total amount due if the lease designates them as “additional rent.” To avoid eviction, a tenant would have to pay these extra charges on top of their base rent. However, a crucial exception exists for properties subject to local rent control ordinances.

The Impact of Opex Realty Management v. Taylor

A published New Jersey Superior Court opinion in the case of Opex Realty Management v. Taylor established a critical rule for rent-controlled properties. The Court held that, “In properties subject to rent control, late and legal fees designated as ‘additional rent’ cannot form the basis for a judgment of possession unless expressly authorized by the rent control ordinance.”

This means that if the monthly rent claimed by the landlord, combined with any fees or other charges designated as “additional rent,” exceeds the maximum monthly rent permitted by the local rent control ordinance, the landlord cannot collect those fees as part of an eviction action for non-payment of rent.

In practice, this prevents landlords of rent-controlled units from using “additional rent” clauses to effectively charge tenants more than the legally allowed rent in an eviction context. Landlords must ensure their claims for rent in a summary dispossess action do not exceed the limits set by the applicable municipal ordinance.