Senate Bill Report EHB 1694 — Allowing tenants to pay certain sums in installments

Summary

A Senate Bill Report on EHB 1694, As of February 20, 2020, titled An act relating to allowing tenants to pay certain sums in installments, prepared for the Senate Committee on Financial Institutions, Economic Development & Trade. The brief summary says that for residential rental agreements three months or longer, tenants may pay certain deposits, fees, and last month's rent in up to three consecutive and equal installment payments, and for agreements shorter than three months, in up to two. The report states that a landlord cannot charge a fee to a tenant choosing to pay in installments. It lists Appropriation: None and Fiscal Note: None, and its background section describes the Residential Landlord-Tenant Act.

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                             SENATE BILL REPORT
                                  EHB 1694

                                      As of February 20, 2020

Title: An act relating to allowing tenants to pay certain sums in installments.

Brief Description: Allowing tenants to pay certain sums in installments.

Sponsors: Representatives Morgan, Macri, Riccelli, Goodman, Jinkins, Cody, Stonier,
   Robinson, Appleton, Pollet, Gregerson and Frame.

Brief History: Passed House: 2/17/20, 54-44.
   Committee Activity: Financial Institutions, Economic Development & Trade: 2/25/20.

                                      Brief Summary of Bill
          Ÿ For residential rental agreements three months or longer in duration,
            tenants are authorized to pay certain deposits, fees, and last month's rent in
            up to three consecutive and equal installment payments.
          Ÿ For residential rental agreements less than three months in duration,
            tenants are authorized to pay certain deposits, fees, and last month's rent in
            up to two consecutive and equal installment payments.


SENATE  COMMITTEE                  ON      FINANCIAL          INSTITUTIONS,           ECONOMIC
DEVELOPMENT & TRADE

    Staff: Clint McCarthy (786-7319)

    Background: Residential-Landlord Tenant Act. The Residential Landlord-Tenant Act
    (RLTA) regulates the creation of residential tenancies and the relationship between landlords
    and tenants of residential dwelling units. The RLTA establishes rights and duties of both
    tenants and landlords, procedures for the parties to enforce their rights, and remedies for
    violations of the RLTA.

    Landlords often collect deposits and fees and other amounts prior to, or at the outset of, a
    tenancy:
        1. Tenant screening fee: The RLTA includes provisions governing the amount that may
           be charged and the information that must be provided to the tenant.

––––––––––––––––––––––
    This analysis was prepared by non-partisan legislative staff for the use of legislative
    members in their deliberations. This analysis is not a part of the legislation nor does it
    constitute a statement of legislative intent.

Senate Bill Report                              -1-                                          EHB 1694
        2. Holding deposit or fee to hold the dwelling unit after the tenant has been offered the
           unit. If the tenant moves in, the landlord must credit the fee or deposit to the first
           month's rent or the security deposit.
        3. Damage or security deposit: The purpose of such a deposit is to cover any damage
           caused to the property by the tenant, in excess of normal wear and tear. Under the
           RLTA, deposits must be placed in a trust account. Any interest earned generally
           belongs to the landlord.
        4. Nonrefundable fee: This may include a cleaning fee; if that is the case, the landlord
           may not also charge the tenant for normal cleaning.
        5. First and last month's rent.

    A tenancy may be for a specified time, such as one year. Alternatively, premises may be
    rented for an indefinite time, from period to period or month to month.

    Summary of Bill: Upon the request of a tenant, a landlord is required to permit the tenant to
    pay any deposits, nonrefundable fees, and last month's rent in installments. If the total
    amount of deposits and nonrefundable fees do not exceed 25 percent of the first full month's
    rent and payment of the last month's rent, the landlord is not required to permit a tenant to
    pay deposits and non refundable fees in installments.

    When premises are rented for period of time that is longer than three months, the tenant may
    elect to pay any deposits, nonrefundable fees, and last month's rent in three consecutive and
    equal monthly payments at the beginning of the tenancy. For tenancies that are less than
    three months, the tenant must pay all deposits, fees, and last month's rent in two consecutive
    and equal monthly installment fees.

    A landlord cannot charge a fee to a tenant choosing to pay in installments. A fee or deposit to
    hold a dwelling unit is not to be considered a deposit or nonrefundable fee

    Appropriation: None.

    Fiscal Note: None.

    Creates Committee/Commission/Task Force that includes Legislative members: No.

    Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                             -2-                                       EHB 1694


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