Protecting tenants from excessive rent and related fees by providing at least six months’ notice for rent increases over a certain amount, allowing tenants the right to terminate a tenancy without penalty, and limiting late fees.

Sponsors: Peterson and Fitzgibbon

Status: DEAD

Summary:

• A landlord may not increase a tenant’s rent by more than 5 percent without providing written notice between 180 and 220 days before the increase take effect.
• The notice must inform the tenant of the tenant’s ability to terminate the tenancy without penalty. A tenant who receives notice of a rent increase of more than 5 percent may terminate the tenancy at any point prior to the effective date of the increase by providing at least 20 days’ notice for a month-to-month or at least 45 days’ notice for a tenancy with a lease, and the landlord must prorate the rent owed to the tenant’s move-out date.
• A tenant who is charged and pays rent reflecting an increase of more than 5 percent without receiving the required written notice may recover actual damages in the amount of the excess rent paid and treble damages, costs, and reasonable attorneys’ fees.
• A landlord may not charge a tenant a fee for late payment of rent that exceeds $75 total.

Amended Bill

• Excludes any utility charges in calculating the 5% threshold for requiring landlord notice and tenant ability to terminate a tenancy.
• Changes the bill’s limit on late rental payment fees from $75 total to the lesser of 10 percent of the rental amount, excluding any charges for utilities, or $75 total.
• Applies the limits on late rental fees to tenancies covered by the MHLTA.

Talking Points

• This bill is rent control lite
• This bill puts an unreasonable expectation on housing providers to predict the rental housing environment over 180 days in advance.
• The bill incentivizes housing providers to regularly increase their rents and punishes housing providers for not increasing rent each renewal.
• This bill creates a confusing and narrow window to issue a rent increase notice and may conflict with the existing lease term.
• Giving tenants the ability to terminate a lease without penalty, after receiving a rent increase, steps between a private contract between two parties. Tenants would be able to violate or break the lease unilaterally which leaves housing providers concerned if their lease will be upheld.
• Late fees are designed to incentivize tenants to pay rent on time. A nominal fee provides little incentive and invalidates the purpose of the fee.
• A nominal fee allows the tenant to use the landlord as a bank.
• The landlord incurs significant cost to service notices related to past due rent.