Relating to methods of payment of rent and security deposits to residential landlords and authorizing associated service charges.
The bill aims to strike a balance between protecting landlords' rights to receive payments while also ensuring tenant protections regarding acceptable payment methods. By maintaining access to cash payments as a viable option, the bill seeks to accommodate tenants who may rely on cash transactions. The stipulation that landlords must provide written notice of payment issues places a level of accountability on the landlord to notify tenants before imposing restrictions on payment methods, which could enhance transparency in landlord-tenant relations.
SB1445 proposes amendments to Section 92.011 of the Texas Property Code, focusing on the methods through which residential tenants can make rent and security deposits to landlords. Under the new provisions, while landlords must permit at least one form of payment other than cash or electronic funds transfer, they retain the authority to require cash payments exclusively under certain conditions. Specifically, this would apply when a tenant's prior payment was refused or dishonored. However, this restriction on payment methods cannot exceed three months following the incident of the dishonored payment.
Notably, there are implications regarding service charges associated with electronic payments. SB1445 allows landlords to impose service charges for processing payments made via electronic funds transfer, capped at a specified limit. While supporters may argue this is a reasonable measure to cover costs incurred by landlords for processing such payments, critics might contend that any additional charges could disproportionately affect low-income tenants or those who are already financially vulnerable. Furthermore, the provision that voids lease terms attempting to waive rights under this section reinforces tenant protections, yet it may be viewed as an overreach by some stakeholders advocating for property owners' autonomy.