Researcher: SM Page 1 4/28/21
OLR Bill Analysis
sHB 6433 (as amended by House "A")*
AN ACT CONCERNING INSPECTIONS OF RENTAL PROPERTY
PRIOR TO OCCUPANCY OR TERMINATION AND LATE RENTAL
PAYMENTS.
SUMMARY
Beginning January 1, 2022, this bill requires landlords to give
tenants the opportunity to request and complete a pre-occupancy
"walk-through" of a dwelling unit after or at the time of entering into a
rental agreement. The bill prohibits a landlord from keeping any
portion of a tenant's security deposit for conditions specifically
identified during the walk-through. Rental agreements entered into
before January 1, 2022, are exempt from the bill's walk-through
requirements.
Additionally, the bill (1) limits the late charges landlords may
impose for overdue rent pursuant to a rental agreement and (2)
requires them to apply any rent payments they receive to the most
recent payment due.
*House Amendment "A" makes numerous changes to the bill's
provisions on rental unit inspections, including (1) redefining
inspections as walk-throughs and permitting landlords and tenants to
designate individuals to complete these walk-throughs on their behalf;
(2) requiring landlords and tenants to use a Department of Housing
(DOH)-provided checklist for walk-throughs; (3) eliminating the
requirement that landlords allow tenants a post-occupancy inspection;
and (4) exempting rental agreements entered into before January 1,
2022, from walk-through requirements. It also simplifies the bill's
limits on late charges landlords may impose and makes minor and
technical changes.
EFFECTIVE DATE: October 1, 2021 2021HB-06433-R010624-BA.DOCX
Researcher: SM Page 2 4/28/21
§§ 1 & 4 — PRE-OCCUPANCY WALK -THROUGHS
Under the bill, a "walk-through" is a joint, in-person viewing of a
dwelling unit's interior by the landlord and tenant, or individuals or
agents they designate, to note and list the unit's existing conditions,
defects, or damages using a DOH checklist. The bill requires DOH to
prepare this standardized pre-occupancy walk-through checklist and
make it available on its website by January 1, 2022. Following a walk-
through, landlords and tenants must each sign and receive duplicate
copies of the checklist.
The bill prohibits a landlord from keeping any portion of a tenant's
security deposit for a condition, defect, or damage noted in the pre-
occupancy walk-through checklist. In administrative or judicial
proceedings, this checklist is admissible, but not conclusive, as
evidence of the unit’s condition at the beginning of a tenant's
occupancy.
§§ 2 & 3 — LIMITS ON LATE CHARGES FOR OVERDUE RENT
By law, if a rental agreement includes a provision requiring tenants
to pay a late charge for overdue rent, it must allow tenants a nine-day
grace period (or four days for week-to-week tenancies) before
imposing the charge. The bill limits the late charges landlords may
impose after this grace period has passed.
Under the bill, if a rental agreement contains a valid written
agreement to pay late charges after the grace period, the charges
cannot exceed 5% of the overdue rent, or 5% of the tenant's share of the
rent in the case of rental agreements that are partially paid by a
government or charitable entity. The bill prohibits rental agreements
from stipulating late charges that exceed this limit.
Additionally, the bill prohibits landlords from assessing more than
one late charge on an overdue rent payment and requires that they
apply new rent payments to the most recent payment due.
COMMITTEE ACTION
Housing Committee 2021HB-06433-R010624-BA.DOCX
Researcher: SM Page 3 4/28/21
Joint Favorable Substitute
Yea 13 Nay 2 (03/09/2021)