In California lease, is a "discount" rent charge back enforceable?

by **calvert** » Sun Dec 18, 2011 2:27 am

This is a question for people experienced in landlord-tenant disputes in California.

Landlord uses a lease addendum that states that they are providing a $100 discount on "market" rent each month. Upon breaking the lease, the tenant will be charged back all "discount" amounts. Tenant may also have to pay the "discount" amounts after they rent it out at the "discount" rate to subsequent tenants I suppose.

I've done a little research, and seen that in one case (Freeman v. United Dominion, 2008 WL 1838373), the court had a lot of doubt about the enforceability of a first month free promotion charge back clause. In both cases, seems like it is a disguised penalty clause, especially if the "discount" is illusory (but even if there is some real basis for the "discount," it still seems to be penalty that kicks in only if there is a breach and has no tie to actual damages).

Anyway, I'm wondering both 1. what the law is here and 2. how a fight over this charge back would actually play out in the event of breaking a lease.

Thanks in advance! And thanks to all of you who give answers that don't have to do with my question!

by **jung-hwa75** » Sun Dec 18, 2011 2:29 am

It is enforceable and actually a very common practice.

by **andor25** » Sun Dec 18, 2011 2:32 am

It is not against California tenant law to offer a discount on an apartment for signing a lease and the discount is based on honoring the terms of the lease. I can remember promotions and giveaways in apartments going back to the 1960s. If you dont fulfill your end of the lease, the discount is voided and you owe the $100 for each month of your tenancy you were there.

You can check this CA website to see if there is something about discounts.

by **starling** » Sun Dec 18, 2011 2:34 am

If you break the lease, you are breaching the lease. Therefore any concessions or "discounts" you received must be paid back.

by **kalvin71** » Sun Dec 18, 2011 2:42 am

In general, yes they can.

by **slaine** » Sun Dec 18, 2011 2:50 am

Yes that is legal & quite standard in most states. Any time a tenant gets a "move in special" or any other kind of a discounted rate and they break the lease they are required to pay back the discount. This is because the tenant got the discount for the 1 yr year lease. If they do not fulfill said lease they are not entitled to the discount.

Same kind of concept as being sued by Section 8 if you get more benefits than you are entitled to by not reporting income.

When you get something you should not get then you have to pay it back in the end.

by **gowan** » Sun Dec 18, 2011 2:59 am

You really need an Attorney for this type of dispute.

I agree that this so called Discount on the so called market rent is no discount at all. The so called market rent is market rent only in the wild imagination of the landlord. That so called discount is merely a thinly disguised penalty for the landlord to charge you if the landlord later decides that he or she does not like you as a tenant..

Yes, many California judges are getting very disgusted with the games that many landlords have been playing and are finding reasons not to enforce the terms of leases that are particularly harmful to tenants.

I recommend that you get an Attorney

If you cannot afford an Attorney then I recommend that you contact the local Legal Aid Society.

The Attorneys for the Legal Aid Society are excellent and they do not charge any money for their services.

A letter from your Attorney at the Legal Aid society will straighten out your corrupt, incompetent landlord real fast.

.

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