HB 1074 – Landlord damage claims

Documentation and processes governing landlords’ claims for damage.

Sponsors: Thai, Macri, Simmons, Ryu, Ramel, Peterson, Lekanoff, and Alvarado

Status: Senate Housing

Summary:

• Extends the timeline for a landlord to provide a statement and documentation for retaining any portion of a tenant deposit from 21 days to 30 days.
• Requires a landlord to substantiate the cost of any damages withheld from a tenant deposit with repair estimates, invoices, or other documentation.
• Prohibits a landlord from withholding any portion of a tenant deposit for certain items.
• Establishes a three-year statute of limitations (original version was one year) for a landlord to take any action against a tenant to recover sums exceeding the amount of the damage deposit.

Talking Points:

• Creates a new definition “wear resulting from ordinary use of the premises”.
• Deposit cannot be used if move-in checklist does not specifically describe the condition and cleanliness of or existing damage to the fixtures, equipment, appliances.
• Redefines the items on a written checklist to include wall paint and wallpaper, and excludes drapes
• Requires housing providers to provide a written checklist to the tenant in order to collect a security deposit
• Allows the tenant the right to request on free replacement copy of the checklist during tenancy
• Requires the housing provider to provide documentation of estimates or invoices to repair damage, or the cost of materials and labor if the housing provider does the repairs themselves before retaining any portion of the security deposit.
• Excludes several types of damage that a housing provider is allowed to deduct from a security deposit.
• Excludes ‘wear from ordinary use of the premises’, defined as, “Deterioration from intended use, breakage or malfunction, excluding abuse, accident and negligence”.
• Excludes carpet cleaning beyond ‘wear from ordinary use’
• Excludes “excess cost” of repair and replacement of fixtures, appliances, and furnishings beyond ‘wear from ordinary use’, or costs of repair and replacement if their condition was not reasonably described in the written checklist.
• Requires the housing provider to prepare a written termination walkthrough checklist specifically describing the condition, cleanliness, and existing damage to the premises, fixtures, equipment, appliances, and furnishing. The checklist must be signed and dated by the parties with a copy provided to the tenant.
• Excludes from damage that a housing provider is allowed to deduct from a security deposit.
• Prevents costs for damages beyond wear from ordinary use from being charged to a tenant or used in any collection action or tenant screening report.
• Prevents any action taken against a tenant to recover damage costs beyond the amount of the security deposit to be commenced within one year of the termination of the tenancy.
• Exempts the regulations on withholding security deposit for purposes unrelated to damages to the property such as rent or other charges.