Washington Senate Bill Report ESHB 2535 (Feb. 26, 2020)
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2020-02-27
- Case
- 2020 02 27 A26685 D218636 Bill Report 2535 S E Sba Fiet 20 Ta
Summary
A Senate Bill Report on ESHB 2535, as of February 26, 2020, prepared by non-partisan staff of the Senate Committee on Financial Institutions, Economic Development & Trade, for an act providing for a grace period before late fees may be imposed for past due rent. The bill is sponsored by the House Committee on Civil Rights & Judiciary, originally by Representatives Kirby, Pollet, Ormsby and Santos, and passed the House 92-4. The report gives background on the Residential Landlord-Tenant Act, including its rules on prohibited rental agreement provisions and the 14-day notice to pay rent or vacate. It summarizes the bill, under which a landlord may not charge late fees unless rent is at least five days past due. The three-page report ends with a staff summary of public testimony in favor of the bill.
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Full text
SENATE BILL REPORT
ESHB 2535
As of February 26, 2020
Title: An act relating to providing for a grace period before late fees may be imposed for past
due rent.
Brief Description: Providing for a grace period before late fees may be imposed for past due
rent.
Sponsors: House Committee on Civil Rights & Judiciary (originally sponsored by
Representatives Kirby, Pollet, Ormsby and Santos).
Brief History: Passed House: 2/16/20, 92-4.
Committee Activity: Financial Institutions, Economic Development & Trade: 2/25/20.
Brief Summary of Bill
Provides that a landlord may not charge late fees for past due rent unless
the rent is at least five days past due.
Provides that if 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.
Allows a landlord to serve a notice to pay rent or vacate at any point after
the rent becomes due.
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 relationship between residential landlords and tenants, defines terms,
and includes provisions regarding the duties of tenants and landlords, as well as 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. "Dwelling unit" is a structure or that
part of a structure which is used as a home, resident, or sleeping place.
––––––––––––––––––––––
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- ESHB 2535
One section of the RLTA provides that any provision of a lease or rental agreement that
waives an RLTA provision is deemed against public policy and is unenforceable. That section
also expressly prohibits rental agreements from including certain types of provisions,
including those that:
waive or forgo rights or remedies under the RLTA;
authorize any person to confess judgment on a claim arising out of the agreement;
agree to pay the landlord's attorneys' fees, except as authorized by the RLTA;
agree to exculpation or limit liability of the landlord arising under the law or to
indemnify the landlord for that liability; and
agree to a particular arbitrator at the time that the rental agreement is executed.
If a landlord deliberately uses a rental agreement containing provisions they know to be
prohibited, the tenant may recover actual damages together with statutory damages not
exceeding $500, costs of suit, and reasonable attorneys' fees.
Rent. The terms "rent" and "rental amount" are defined under the RLTA to mean recurring
and periodic charges identified in the rental agreement for the use and occupancy of the
premises, which may include charges for utilities. It is specified in the definition that these
terms do not include nonrecurring charges for costs incurred due to late payment, damages,
deposits, legal costs, or other fees, including attorneys' fees. An exception is included for
nonrefundable fees or deposits which a landlord permits to be paid in installments.
A landlord must first apply any payment made by a tenant toward rent, before applying any
payment toward late fees, damages, legal costs, or other fees, including attorneys' fees. A
tenant's right to possession of the premises may not be conditioned on the payment of any
amount other than rent. A landlord is not foreclosed from pursuing other lawful remedies to
collect late fees, legal costs, or other fees, including attorneys' fees.
A tenant is liable for unlawful detainer when they continue in possession of the dwelling unit
after a default in rent, and after a 14-day notice to pay rent or vacate has been served, without
paying the rent during that 14-day period.
Summary of Bill: The RLTA is amended to provide that a landlord may not charge late fees
for past due rent unless the rent is at least five days past due. 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. A landlord is not prohibited from serving a notice to pay rent or vacate at any time
after the rent becomes due. A rental agreement may not include a provision pursuant to which
the tenant agrees to pay late fees for rent that is paid within five days following its due date.
If 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, and a landlord is not prohibited from serving a
notice to pay rent or vacate at any time after the rent becomes due.
Appropriation: None.
Fiscal Note: Not requested.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Senate Bill Report -2- ESHB 2535
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony: PRO: Not all landlords start charging fees the day
after rent is due. This is a bill intended to keep everyone honest. This bill does not have
anything to do with the "Just Cause" issue. All your credit cards have a grace period. Our
mortgages have grace periods. These are common in rental agreements as well. A lot of
rental agreements have a five day grace period built in, but they are not required. Mortgages
have a ten day grace period, so landlords would not be materially affected by this change. A
lot of people on fixed income receiving benefits for federal disability payments where the
timing does not quite align with having funds available on the first of the month. This is a
simple but important change. Tenants with means cannot always pay the day that rent is due.
It is wrong for low income people to have to pay a monthly penalty when their income
stream doesn't allow for a perfectly timed payment. Fees are a growing problem across
Washington State, and this is a necessary change to give tenants flexibility.
Persons Testifying: PRO: Representative Steve Kirby, Prime Sponsor; Dinah Braccio,
Tenants Union of Washington State; Xochitl Maykovich, Washington Community Action;
Sarah Nagy, Columbia Legal Services; Michele Thomas, Washington Low Income Alliance;
Brett Waller, Washington MultiFamily Housing Association.
Persons Signed In To Testify But Not Testifying: No one.
Senate Bill Report -3- ESHB 2535
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