Written by attorney Rixon Charles Rafter III

Two Months Liquidated Damages Clause in Lease Agreements

Where state laws allow it, the lease should include a provision whereby the tenant agrees to two months rent as liquidated damages for a breach.

This may be tempered by state laws pertaining to confession judgments in advance, but to the maximum extent possible, the tenant and the landlord should be clear on the result of a breach in terms of the potential liability that the offender may be open to. Check your state landlord tenant statutes before adding the clause to a lease agreement to ensure liquidated damages are authorized.

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