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The Leasing Hotline
KEY MONEY
Under California law, a landlord has no liability for damages when he merely requests “key money” (an upfront bonus payment made by the tenant in order to secure the tenancy); he may be subject to a penalty where key money is requested and paid by the tenant, and where the landlord subsequently refuses to state the amount of the key money payment in the resulting lease. Edamerica Inc., et al., v. Superior Court of the State of California for the County of Los Angeles; Kwan Jin Jung, Real Parties in Interest, B167449, Court of Appeal of California, Second Appellate District, Division Eight, Dec. 23, 2003.
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