[RPPTL Leasing Committee] [EXTERNAL] RE: LL/T Legislation - HB 537

Fri Nov 12 08:47:18 PST 2021

I’m not speaking for or against but Rhino is currently operating in 36 states, including Florida. Their target audience is large apartment complexes. It may be worth speaking with a Lease Lock representative before forming a hard and fast opinion. I’d be happy to reach out and arrange if the committee would like. I’m told they have never gone after a tenant after paying a damage claim to the housing provider. The typical monthly fee is $25 and the tenant can convert that to a traditional security deposit at any time.

Trey Goldman
Legislative Counsel
Florida Realtors

On Nov 12, 2021, at 8:03 AM, Harry Heist <harry at evict.com> wrote:

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Legislation such as this is being pushed by the security deposit alternative companies such as Obligo, Rhino, and Assurant.   It is already in place in some cities and counties outside of Florida and in some cases, it is mandatory that the landlord must allow an alternative.

The public is very confused by these products and it is a mess. Some are insurance products. Some bonds.   Many property managers use the established companies but many want to charge fees in lieu of deposits on their own and they are pocketing the money and in some cases, they charge for example $150 a month in perpetuity, through renewals, instead of a $1000 security deposit upfront.  This results in a LARGE profit to the property manager, the property owner has no clue it is going on, and most likely this is an unfair and deceptive trade practice or possibly is “insurance”.  The property managers are in essence creating their own insurance product for the $1000.  If there is $1000 in loss to the owner, the property manager pays it but pockets the difference collected.

I sent an email about this issue a while back but nobody seemed interested. Here is a helpful article written by a property manager which explains how some work: https://www.peterlohmann.com/blog/security-deposit-alternatives-tenant-screening-innovation<https://url.emailprotection.link/?bPfGH3K7Lhn6LidtL_pap4ohw_hlnkIQ_r0nca60Or8c1nge67LQnGX8qzfvEYsOPmYSqMsGxAkIr2U4hhm9ky1m-3E3_sm1H-JxPyPKsABzntlGEPBDlg-u_Jl6XjlxMieJvHY2ZudNFlzeMMJZICMH3Pdopyy_kkH7Jj24KbuE~>

Unless this is written up correctly, it could really create a situation where a tenant is taken advantage of all under the guise of helping them not have to pay a large deposit upfront.

The creation of many guarantees, pet damage protection, eviction protection, rent loss protection by the property manager is spreading rapidly due to some loudmouths on social media who have concocted these money making schemes.  I contacted the FLOIR  (Florida Office of Insurance Regulation)  and they told me it is insurance and they wanted me to name names which of course I would not do.   The property managers think that is they do not call something “insurance”, then they are in the clear.  I see some class actions on the way.  There are way too many fees that are not being disclosed until an applicant pays money, gets approved, is bound to sign a lease, and is ready to sign the lease. That is false advertising, bait and switch and no different than the Resort Fee cases which made a lot of lawyers a lot of money.

Harry Heist
CDC ORDER HAS BEEN STRUCK DOWN BY THE SUPREME COURT
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From: landten-bounces at lists.flabarrpptl.org <landten-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL Real Estate Leasing Committee
Sent: Thursday, November 11, 2021 11:00 PM
To: RPPTL Landlord Tenant Committee <landten at lists.flabarrpptl.org>; RPPTL Landlord Tennant Committee <landtencl at lists.flabarrpptl.org>
Cc: Trey Goldman <treyg at floridarealtors.org>; Marcia Tabak <marciat at floridarealtors.org>
Subject: Re: [RPPTL Leasing Committee] LL/T Legislation - HB 537

Dear Leasing Committee:

Trey Goldman from Florida Realtors and the RREIL committee has provided the information below on HB 537: Fees in Lieu of Security Deposits (filed 11/8/21). Also note the information on a similar law that was passed in Texas.

Bill Summary/Link:

“Fees in Lieu of Security Deposits; Authorizes landlord to offer tenant option to pay fee in lieu of security deposit; requires landlord to provide certain written notice to tenant; requires written agreement signed by landlord, or landlord's agent, & tenant if tenant decides to pay fee in lieu of security deposit; requires specified disclosure in written agreement; provides options for paying fee; specifies that fee is not security deposit; requires landlord to offer option to pay fee in lieu of security deposit to all new tenants; provides exception.” https://www.flsenate.gov/Session/Bill/2022/537<https://url.emailprotection.link/?bMvMe7y7wlLR8-fpzN6q3kepUr-a7fZVe_pB29zdjYV4Y82CkynTLMYJ3RCaYH5_-SVjtuIS9V70Bgjppc4J77-smu2_DWkKPx9gA9ZfJYNYYdxpiJzQL3Dlcjj-h_IRv>

I know this will certainly be of interest to the committee. We will monitor this at the committee level but if anyone is of the opinion we need to do more than that or would like to provide feedback to Trey, please do voice your comments.

Thank you

- Kristen

Kristen King Jaiven, Esq.

General Counsel

The Signature Real Estate Companies

Ph: 561.705.0140

Direct Line: 561-300-6921

Email: Kristen at quadcompanies.com<mailto:Kristen at quadcompanies.com>

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On Thu, Nov 11, 2021 at 8:37 PM Trey Goldman <treyg at floridarealtors.org<mailto:treyg at floridarealtors.org>> wrote:
Hi Kristen.

Was nice seeing you at the meetings last week.

Here’s the bill I mentioned - https://www.flsenate.gov/Session/Bill/2022/537<https://url.emailprotection.link/?bMvMe7y7wlLR8-fpzN6q3kepUr-a7fZVe_pB29zdjYV4Y82CkynTLMYJ3RCaYH5_-SVjtuIS9V70Bgjppc4J77-smu2_DWkKPx9gA9ZfJYNYYdxpiJzQL3Dlcjj-h_IRv>. The Leasing Committee may totally pass on, and I won’t be offended. Just sharing.

https://www.ky3.com/prnewswire/2021/10/20/texas-new-security-deposit-law-offers-new-opportunity-apartment-owners-managers-renters/<https://url.emailprotection.link/?baVZAKg0zXBBkZm3pd2ilaOlqOYts24JZPsw4tJKfRxc0OG0EUm_p8JlTT6-Mvs97Bqlv5vg8W03vk1uH8-4Su49aC4YTBR1abWGVJEKfSVyFwkKMVMBVpmcMI_1mjUeTPVk6rsLZ6Y1CsfPMkBil-80_JwRMhrjo-aARBkRGcM8~>

LeaseLock<https://url.emailprotection.link/?bFgc4AGb_Wu7N9mtTsKerzIqwvITC-PX8iXfaQdlEj7Y4WhkBEIrvrFx631j6srCJteZ-mPRvAekpLW_a7SuwU3c3N6Zj9sIoCack0TLfMYgtDSRwpgp9KUfEBu-9498z8DPGs0pNEZcOB-g6Rd36cSlyDEkdkdpOSUbU8e0phflwKcSQoOldsDYxgXX0OSEvdIbAKMorKPHndzNQbZnwmrfX2ioe94mKeimBOScXRRdGpZEpngcHTimCWl_4wsA2OUmLA4duw15xD9nCTjH8gkA_O2wPB3ekdzVKCjumDnjhMLHyEIhI3Xt__vN7Fi5NKAI87VkPhvQh6lFKep4-WQ~~>

The language that passed in Texas is very different than language filed in Florida - https://capitol.texas.gov/BillLookup/History.aspx?LegSess=87R&Bill=SB1783<https://url.emailprotection.link/?bk_bxnkHGWo7Y3Gl1YgApnvYlDJXnzIdnzI5iMmuy5AukuZK-AeD07D2PVL_FdGc7YcZ7FzQR5kMuPK_b6mxLQ-BAXWmk1ksJEQwaxyKrsWu9r3IU9BDTKR3b4FU_ZMSKytEYERhRS6uhR-fhrWIDLuVtN5BQ48wonIBQcIJ8dbo~> – but intent is the same.

Let me know if you have any questions.

Trey Goldman

Legislative Counsel | FloridaRealtors®
200 South Monroe Street, Tallahassee, FL 32301
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