Fighting a 400% Parking Rate Hike and $3,000 ‘Billing Error’
When I signed my lease, parking came as part of the deal for a flat monthly rate. That rate was not tied to the 3% annual rent increase. Years later, out of nowhere, my landlord told me the parking fee would jump by 400%. Naturally, I refused to pay and cited the law.
That’s when they tried another tactic: claiming they had made a “billing error” for the last seven years and that I owed them nearly $3,000 in back parking charges. I refused again and the back and forth began. (I want to note they did not say another word about the illegal rate hike they attempted.)
The Law That Makes It Possible
In New Jersey, landlords can’t just make up new fees or dramatically hike existing ones unless the lease agreement explicitly allows it. If your lease says a charge is a flat rate, then it stays flat unless you agree otherwise. I had not agreed to any changes. And even if they argued the parking fee was part of the regulated rent, they still could not raise it by more than 4% — Newark's hard cap on annual rent increases under Municipal Code 19:2-3.
Under Newark’s Rent Control Ordinance (§ 19:2-1.1 et seq.), parking fees are explicitly considered part of the rent. They are subject to the same restrictions on rent increases. Specifically:
The Ordinance caps annual rent increases at the lower of 4% or the published CPI-U percentage for the month the increase takes effect (Newark Municipal Code 19:2-3). The Rent Control Board can authorize a higher increase only through a hardship application, a tax/utility/major-improvement surcharge, or a rehabilitation exemption — none of which apply to a landlord unilaterally hiking a flat-rate parking fee.
Key protections back this up:
Lease Agreement = Contract
A lease is a binding contract. A landlord can’t unilaterally change its terms (like raising a flat-rate parking fee) without tenant consent.
Also, if the lease has a holdover clause, that lease stays valid from term to term. [A holdover clause in a lease explains what happens if a tenant remains in the rental after the lease ends without signing a new one.]
Retroactively inventing seven years of "billing errors" may also violate the New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.), which prohibits deceptive practices. Successful claims can entitle a tenant to triple damages, attorney's fees, and court costs.
My current lease holdover clause states that if I remain in the apartment after my lease term ends, the lease automatically renews for another 12 months under the same terms, but with a 3% rent increase applied. This means that for my lease, the parking fee (if it was not already in the lease as a flat fee) could only be increased by 3%.
How I Followed the Law—Step by Step
Reviewed My Lease: It clearly stated “flat rate” parking. No clause tied it to rent increases.
Tip: Use the I'm About to Sign a Lease Toolkit to flag language around fees.
Refused the Increase in Writing: I formally wrote back, refusing to pay the 400% hike.
Tip: Use the form letter from My Landlord Raised the Rent Toolkit
Cited the law: I referenced Newark’s Rent Control Ordinance, noting that they cannot raise the fee more than the allowed amount of 4% set by the city for the period. I also said that it's criminal to retroactively bill for seven years of “errors.”
Kept Documentation: I saved every email, notice, and my lease copy.
Stood Firm: The landlord backed down when they realized I knew my rights and that I knew what steps to take to file formal complaints or take legal action.
An aside: My current lease with the holdover clause is only a few pages. They have been trying to get me to sign a new 37-page lease that would only reduce the meager protections I have. No one drafts new extensive rules to give you more rights and freedoms, so I refused to sign because my current one is still valid.
One final note: Before paying unexpected charges, review your lease; if it specifies a "flat rate," landlords cannot change it. Respond to unauthorized charges in writing — the sample letters in the toolkits are a good starting point. Familiarize yourself with tenant protection laws like the Consumer Fraud Act and Newark’s Rent Control Ordinance. Don't succumb to "back charges," as courts typically disapprove of landlords who delay addressing billing "errors."
Toolkits used:
