Residential Landlord-Tenant Act.
The Residential Landlord-Tenant Act (RLTA) regulates the relationship between residential landlords and tenants, including the duties of tenants and landlords and remedies for violations of those duties. With some statutory exceptions, the rental of a dwelling unit for living purposes is generally covered under the RLTA.
Rent Increases.
Except for rental agreements governing subsidized tenancies, a landlord must provide each affected tenant a minimum of 60 days' prior written notice of an increase in the amount of rent, and any rent increase may not become effective before the end of the rental agreement. For subsidized tenancies where the rental amount is based on the income of the tenant or circumstances specific to the subsidized household, the landlord must provide 30 days' prior notice of the rent increase, and the rent increase may become effective at the end of the rental term or sooner upon mutual consent.
Termination of Tenancy.
A tenant who terminates a tenancy of a specified time, sometimes called a lease, prior to the end of the lease period is liable for rent until the end of the period, although the landlord is required to mitigate his or her damages by attempting to re-rent the unit at a fair rental price. Alternatively, a dwelling unit may be rented for an indefinite time, from month-to-month or period to period. Such a tenancy is automatically renewed for another month or period until terminated by the landlord for causes specified under the RLTA or by the tenant by giving at least 20 days' written notice prior to the end of any of the months or periods of tenancy.
Late Fees.
A landlord may not charge late fees for rent that is paid within five days following its due date. If the rent is more than five days past due, the landlord may charge late fees commencing from the first day after the due date until paid. When late fees may be assessed after rent becomes due, the tenant may propose that the date rent is due per the rental agreement be altered to a different date of the month. The landlord must agree to such a proposal if it is submitted in writing and the tenant is able to demonstrate that his/her primary source of income is a regular, monthly source of governmental assistance that is not received until after the date rent is due per the rental agreement. The proposed due date may not be more than five days after the date the rent is due per the rental agreement.
Manufactured/Mobile Home Landlord-Tenant Act.
The Manufactured/Mobile Home Landlord-Tenant Act (MHLTA) governs the legal rights, remedies, and obligations arising from any rental agreement between a landlord and a tenant regarding a mobile home lot within a mobile home park where the tenant has no ownership interest in the property or in the association that owns the property.
Rent Increases.
A landlord must provide a tenant with three months' written notice of any rent increase, any rent increase may not become effective before the end of the term of the rental agreement.
Termination of Tenancy.
If a tenant does not intend to renew a rental agreement, the tenant must notify the landlord one month prior to the end of the rental agreement.
Residential Landlord-Tenant Act.
Under the RLTA, a landlord may not increase a tenant's rent by more than 7.5 percent without providing written notice between 180 and 220 days before the increase takes effect. The notice must inform the tenant of the tenant's ability to terminate the tenancy. A tenant who receives notice of a rent increase of more than 7.5 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 periodic tenancy or at least 45 days' notice for a tenancy of a specified period, 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 7.5 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.
Manufactured/Mobile Home Landlord-Tenant Act.
Under the MHLTA, a landlord may not increase rent by more than 4 percent without providing written notice between 180 and 220 days before the increase takes effect. The notice must inform the tenant of the tenant's ability to terminate the tenancy. A tenant who receives notice of a rent increase of more than 4 percent may terminate the tenancy at any point prior to the effective date of the increase by providing at least 45 days' notice, 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 4 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.
The substitute bill changes the percentage that triggers a landlord's requirement to provide between 180 and 220 days' written notice and a tenant's ability to terminate a tenancy from 3 percent to 7.5 percent. The original bill allowed a tenant to terminate the tenancy at any time after receiving such a notice; the substitute bill allows a tenant to terminate the tenancy with 20 days' notice for a month-to-month tenancy and 45 days' notice for a tenancy of a specified period.
The substitute bill changes the maximum allowable late fee charged due to nonpayment of rent from 1.5 percent of the tenant's monthly rent to $75.
The substitute bill adds requirements for tenancies governed by the MHLTA. A landlord of a mobile home park may not increase rent by more than 4 percent without providing written notice between 180 and 220 days before the increase takes effect. The notice must inform the tenant of the tenant's ability to terminate the tenancy. A tenant who receives notice of a rent increase of more than 4 percent may terminate the tenancy at any point prior to the effective date of the increase by providing at least 45 days' notice, and the landlord must prorate the rent owed to the tenant's move-out date. A mobile home tenant who is charged and pays rent reflecting an increase of more than 4 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.
(In support) This bill is not about rent control. It does not bar anyone from increasing rent. It is about notification to the tenant. If a landlord's costs go up, then the rent can be raised, but the tenant receives notice in case they need to find another place to live. Many tenants are barely scraping by with an affordable housing shortage. Tenants are facing rent increases of 50 percent or more. These increases are leading to homelessness. Inflated rent is forcing difficult choices between housing, food, and medical care. Chronic conditions and disabilities prevent some people from moving or from working to cover the additional rent. Senior citizens cannot afford significant rent increases, but subsidized housing has long wait lists. Tenants need more than 60 days' notice for rent increases. With low vacancy rates, this bill gives renters an opportunity to navigate rent increases in the difficult housing market. Landlords use rent increases to force tenants to move. It is a loophole in just cause protections.
(Opposed) Notice requirements for rent increases were just changed in 2019. Landlords cannot keep up with the increasing number of state and local regulations. Landlords are bearing the costs of tax increases and the pandemic. Landlords try to be good and fair. Landlords do not want to lose good tenants. Rent increases are often delayed. Landlords do not always know what the property tax increase will be six months in advance. The moratorium prevented landlords from raising rents to keep pace with rising costs. Rent is based on the of operating and maintaining rental properties, and supply chain issues are increasing the cost of repairs and maintenance. This bill would have a drastic impact on smaller landlords, especially the ability of a tenant to move out at any time after notice. Landlords cannot afford to continue being landlords and are selling their rental properties to new owners who use them as a primary residence instead. This bill will create significant challenges for affordable housing owners and limit the construction of additional affordable housing. Some federal programs only allow rental increases once per year.