Tennessee House Bill HB2025

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24
• Refer: 1/25/24
• Failed: 3/5/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 47, Chapter 18 and Title 66, relative to residential rental housing fees.

Impact

The legislation will amend Tennessee Code Annotated and introduce a new chapter addressing the conduct of landlords and management entities. It will set standards on the treatment and communication regarding fees, application processes, and maximum allowable security deposits, which cannot exceed one month's rent. Additionally, it introduces a five-day grace period for late rent payments before any fees can be charged, which is intended to protect tenants from immediate penalties and additional financial burdens.

Summary

House Bill 2025, also known as the 'Residential Rental Fee Transparency and Junk Fee Prohibition Act', proposes significant changes to Tennessee's regulations concerning residential rental properties. The bill aims to enhance transparency in rental agreements by requiring landlords and management companies to fully disclose all fees associated with residential rental housing prior to a prospective tenant submitting an application. This includes application fees, which cannot exceed fifty dollars unless they reflect actual processing costs, and landlords must clarify if they accept reusable tenant screening reports.

Contention

The bill has sparked discussions regarding the balance between tenant protections and landlord rights. Proponents argue that by capping fees and mandating transparency, it would empower renters, particularly those in vulnerable financial situations, while also streamlining application processes. However, some landlords and real estate groups have expressed concerns over the feasibility of complying with these requirements, claiming it may lead to an increase in rental costs as landlord entities adjust to these new regulations. Specifical points of contention revolve around perceived overreach by state law into local rental markets and the potential negative implications for housing availability.

Particulars

If passed, the act will take effect on July 1, 2024, and it will impact all agreements made or amended from that date onwards. Violations of this act can lead to fines of up to five hundred dollars per infraction, with individuals having the right to pursue legal action against landlords for non-compliance. This aspect emphasizes accountability and could encourage landlords to adhere to the new regulations to avoid legal repercussions.