What is Penal Rent?

Rent agreements and lease contracts specify the amount, method of payment, and deadline by which rent must be paid, and the tenant/lessee is required to adhere to those details. 

Assume that the rent is due on the 10th of each month, and that it must be paid by the 10th of each following month. The tenant/lessee is liable to pay an additional cost over and above the stipulated rent amount in case of a delay or default in paying the rent within the stipulated time. 

In addition to the fixed rent, there is also an additional amount called Penal Rent and it is stipulated in the rental agreement.

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