An act relating to capping annual rent increases and security deposits
Impact
The proposed measures within H0135 are designed to provide greater stability for tenants facing annual rent increases, which can often outpace inflation and wage growth. By capping rent increases to a more manageable percentage, the legislation aims to alleviate some pressure on renters, making housing more affordable in the long term. The limitation on security deposits further supports renters by reducing the upfront financial burden associated with securing rental properties. These changes align with broader efforts to improve tenant rights and affordability in the housing market.
Summary
House Bill H0135 seeks to address housing affordability by instituting caps on annual rent increases and establishing limits on security deposits required by landlords. Specifically, the bill proposes that rent increases could not exceed the average of the Consumer Price Index (CPI) over the prior 12 months or 6% of the most recent rent, unless landlords can prove that greater increases are necessary due to unforeseen costs related to repairs or other significant circumstances. Additionally, the bill restricts security deposits to a maximum of one month’s rent, and allows this amount to be applied toward the final month of rent, contingent upon the absence of damage found during a final inspection prior to lease termination.
Contention
While supporters of H0135 argue that capping rents and regulating deposits are necessary steps toward ensuring affordable housing, the bill is expected to face opposition from landlords and real estate interests. Critics may contend that the regulation of rent increases could deter investment in rental properties or lead to reduced maintenance and upkeep as landlords navigate profitability under fixed income conditions. Moreover, there may be concerns that such regulations could lead to unintended consequences in the housing market, such as a decrease in available rental units if landlords choose to exit the market rather than comply with stringent controls.
Adds a provision that allows a tenant to pay the last month's rent or any other prepaid rent. It also increases the amount that a security deposit can be requested from one to two (2) months of rent.
Adds a provision that allows a tenant to pay the last month's rent or any other prepaid rent. It also increases the amount that a security deposit can be requested from one to two (2) months of rent.