TAMPA, Fla. (WFLA) — Housing continues to dominate the conversation as prices across the U.S. continue to rise. In Florida, where popular movers’ markets are seeing huge price jumps, the state legislature is weighing a potential change to how tenants can pay to move.
Normally, renters have to pay a security deposit, plus a first month’s rent. As affordable housing continues to be a challenge to Floridians, particularly as more people move to the state, one bill would allow landlords and tenants to pay a monthly security fee instead of a security deposit, removing some of the high start-up costs to renters looking for a new place to live.
According to analysis by the legislature, the bill is aimed at assisting low-income families secure housing.
“For low-income families, security deposits may pose a significant barrier to safe and affordable housing. A security deposit equal to one or more month’s rent is often more than a low-income family can afford, preventing the family from accessing housing, or keeping the family in substandard housing even when the family could otherwise afford to move,” the analysis reports. “Moreover, since Florida law permits landlords to keep security deposits for 15 days after a tenant has vacated a unit, the delay may keep a low-income tenant from being able to immediately move into new housing.”
If it passes, House Bill 537 would let landlords and tenants choose to forgo a deposit for additional fees each month, or the option to switch back to a full deposit during the terms of a tenant’s lease. However, if a landlord offers this option to a renter, they are required to offer it to all of their tenants.
When a tenant takes the offer of fees over deposits, they’ll still be required to pay for their full rent, insurance if required, and any associated start up fees for utilities like electric, water, gas and broadband, if necessary.
The bill, as written, says that at any time during a lease, the tenant can switch to paying the security deposit rather than a security fee each month. The fees are not refundable, if used, and both the tenant and landlord must sign a document agreeing to the amount of the fee and when it would be collected.
At no time does the proposed legislation allow for fees to be waived and deposits skipped. It’s either one or the other. The offer and agreement must be included in writing, which must be delivered to the tenant by the landlord. Renters still have to take care of their apartment, and pay for any damages to the apartment, condo or home beyond what the law calls “normal wear and tear.”
The bill also provides a mechanism for dealing with unpaid rent and fees. In the event a renter leaves their lease, the landlord must inform them of any fees from unpaid rent or other financial obligations within 30 days of the lease’s conclusion. Landlords will also not be allowed to hit tenants with insurance claims over unpaid rent or fees until at least 15 days after providing a written notice seeking the payments.
If a claim is paid by an insurer, they’ll be allowed to ask the renter to pay them back within a year of covering costs owed to a landlord, and by law must give the tenant a copy of all claims and settlement documents. The proposed bill would also prevent a tenant from having to pay both a landlord and an insurer for any costs, with landlords prohibited from seeking payment from both the renter and insurer.
According to the bill, if a landlord offers a tenant the option to have the monthly security fee instead of a deposit, they must also offer it to any new tenants who come to the property afterward. The option would not reapply to tenants already staying at the property, at least according to how HB 537 is currently written. At any time, the landlord may also completely remove the option for all tenants who have agreed to it, and require the deposits be paid in full.
The proposed legislation does not clarify what the fees may cost, as far as a portion of the deposit, nor if tenants who switch back to a deposit would pay the full amount, or a pro-rated amount based on what the total would be. As written, security fees could be any amount per month, agreed to between both parties. The bill also does not state if all tenants would have the same security fee costs, or if the costs would vary.
If it clears the Florida House and Senate during the legislative session, HB 537 would take effect on July 1, 2022.