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Reasonable Expenses in Lein Laws

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  • Reasonable Expenses in Lein Laws

    Hey everyone, I've recently become the manager of a facility and I'm working to get some severely delinquent tenants out. Beyond that I want to make sure they're accountable to for every penny that they owe the facility. According to the New Jersey lein law:

    "Before a sale of personal property the occupant may pay the amount necessary to satisfy the lien, and the reasonable expenses incurred by the owner to redeem the personal property. Upon receipt of this payment, the owner shall return the personal property, and the owner shall have no liability to any person with respect to the personal property"

    My question is what constitutes "reasonable expenses". Is this the fee for the certified letters sent out? For the ad that has to be put in the paper (yes we still have to do this in NJ)? Or does this just mean that they have to pay the late fees? Any help is much appreciated!

  • #2
    We charge a $75 dollar lien fee when we start the lien process. This fee includes the $35 we charge to cut off a lock, cost of a certified letter and our time to mail, send, redeem it, cost for publishing the advertisement twice in the newspaper, cost of our employees time to inventory the unit, and cost for extra collections efforts. I believe our fee to be reasonable by the definitions of the law.


    • #3
      That's a good idea and sounds fair. If this isn't expressly in the lease would there be any troubles. The lease says that we can do anything that the NJ lein law says in allowed, so I assume that this is okay.

      but you know what happens when you assume....


      • #4
        The reasonable expenses are the lien fee's that you do charge and yes they do include the ad fee, the cutting of the lock and the certification letters.

        In NJ the certification letters can now be sent via email if the tenant supplied an email address at the time of the move in or supplied it at any time during their stay.
        Don't put off until tomorrow, what you can do today.


        • #5
          We also charge a $75 dollar lien fee. Our lien law in AZ is the same (reasonable expenses).


          • #6
            We charge $75 at our facility here in North Carolina too. Covers the lock cut, ad, 'my time' and auction fees.
            I want buns of steel.
            I also want buns of cinnamon.

            Newcastle, WA


            • #7
              $75. lien fee in NJ!
              Don't put off until tomorrow, what you can do today.


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