[RPPTL Leasing Committee] [RPPTL LandTenCL] LL/T Legislation - HB 537

Fri Nov 12 10:01:54 PST 2021

All:

A companion bill was also filed by Senator Boyd (chairman of the Committee
on Banking and Insurance). SB 884.

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

www.SignatureRealEstateCompanies.com
<http://www.signaturerealestatecompanies.com/>

[image: Signature Partners] <http://mysignaturenetwork.com/>

On Fri, Nov 12, 2021 at 12:39 PM RPPTL Real Estate Leasing Committee <
landten at lists.flabarrpptl.org> wrote:

> I’m in favor of allowing SD alternative options but the law needs to be
> really clear as it can open the door to scammers, poorly funded companies
> and abuse of both the owners and tenants. Recently one of the rent
> guaranteeing products got in some serious trouble when evictions were
> halted for a while.  Now of course they have a clause excluding pandemics.
>
>
>
> The last few years of housing shortages and high rents have empowered
> housing providers. Social media is now full of schemes and scams to extract
> as much money as possible out of owners and tenants. Unethical companies
> have come into the marketplace and any product or service that will get the
> property manager more money into their pockets is being rapidly embraced.
>
>
>
> Hidden profits that would not be allowed (or would require disclosure) if
> in sales are causing both tenants and landlords to pay more.  A lot more.
> In many cases, property managers are making more than the typical 10%
> commission each month through the use of undisclosed fees, fees disclosed
> late in the process and hidden profits.  One company that provides a/c
> filters (and some other “new benefits”) on a subscription basis is making
> millions now with property managers charging $25 to $49 a month to the
> tenant and the property managers are getting a good piece of that.  The
> tenant has no choice. It is not being presented as an option.
>
>
>
> I’m all about the owner and property manager profiting but it needs to be
> done legally and with full disclosure.  I do not know if Rhino or Obligo
> give kickbacks to the property manager but if they don’t, a new company
> entering the market will and since the law is silent, this puts the
> property manager in a dangerous position.  I am asked all the time “Where
> does it say we can’t do this?” or “Why do we need to disclose?” and I can’t
> answer the question with any solid law.
>
>
>
> Harry
>
> *CDC ORDER HAS BEEN STRUCK DOWN BY THE SUPREME COURT *
>
> *INFO ON CARES COVERED PROPERTY: *
> https://evict.com/?page=cares_act_update
>
>
>
>
>
>
> *LAW OFFICES OF HEIST, WEISSE & WOLK P.A.PH: 1 800 253 8428FAX: 1 800 367
> 9038"Serving the Property Management Professional"Website:  *
> *www.evict.com* <http://www.evict.com/>
> * Email: **harry at evict.com* <harry at evict.com>
>
>
>
> *From:* landten-bounces at lists.flabarrpptl.org <
> landten-bounces at lists.flabarrpptl.org> *On Behalf Of *RPPTL Real Estate
> Leasing Committee
> *Sent:* Friday, November 12, 2021 11:48 AM
> *To:* landtencl at lists.flabarrpptl.org; landten at lists.flabarrpptl.org
> *Cc:* 'Trey Goldman' <treyg at floridarealtors.org>; 'Marcia Tabak' <
> marciat at floridarealtors.org>
> *Subject:* Re: [RPPTL Leasing Committee] [RPPTL LandTenCL] LL/T
> Legislation - HB 537
>
>
>
> I agree with Harry’s thoughts here. I also think it’s rather tone deaf in
> light of the current housing climate, but that’s a separate issue.
>
>
>
>
>
>
>
> [image: Logo Description automatically generated]
>
>
>
> [image: Text Description automatically generated with low confidence]
>
> *Amanda R. Kison, Esq.*
>
> Board Certified Business Litigation
>
> Bentley Goodrich Kison, P.A.
>
> Main: (941) 556-9030
>
> Fax: (941) 312-5316
>
> *akison at bgk.law <akison at bgk.law>*
>
> 783 South Orange Ave.
>
> Third Floor
>
> Sarasota, Florida 34236
>
> *www.bgk.law <http://www.bgk.law/>*
>
>
>
> [image: Title: Facebook - Description: Facebook icon]
> <http://www.facebook.com/bgk.law>
>
>
>
>
>
> *From:* landtencl-bounces at lists.flabarrpptl.org <
> landtencl-bounces at lists.flabarrpptl.org> *On Behalf Of *Real Estate
> Leasing Committee
> *Sent:* Friday, November 12, 2021 11:03 AM
> *To:* 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 LandTenCL] [RPPTL Leasing Committee] LL/T
> Legislation - HB 537
>
>
>
> 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
>
>
>
>
> 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 *
>
> *INFO ON CARES COVERED PROPERTY: *
> https://evict.com/?page=cares_act_update
>
>
>
>
>
>
> *LAW OFFICES OF HEIST, WEISSE & WOLK P.A.PH: 1 800 253 8428FAX: 1 800 367
> 9038"Serving the Property Management Professional"Website:  *
> *www.evict.com* <http://www.evict.com/>
> * Email: **harry at evict.com* <harry at evict.com>
>
>
>
> *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
>
>
>
> 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
>
> www.SignatureRealEstateCompanies.com
> <http://www.signaturerealestatecompanies.com/>
>
>
>
>
> [image: Signature Partners] <http://mysignaturenetwork.com/>
>
>
>
>
>
>
>
> On Thu, Nov 11, 2021 at 8:37 PM Trey Goldman <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. 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/
>
>
>
> LeaseLock
> <https://leaselock.com/?utm_source=google&utm_medium=cpc&utm_campaign=EN_NORAM_US_Brand&utm_content=521967960636&utm_term=leaselock&device=c&gclid=CjwKCAiAm7OMBhAQEiwArvGi3NeTuJgLsLijq_BfPblu9hYNfEckjQPuJgDbvGsya7BgDxahCDnDxRoCYP4QAvD_BwE>
>
>
>
> 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
> – but intent is the same.
>
>
>
> Let me know if you have any questions.
>
>
>
>
> *Trey Goldman*
> Legislative Counsel | *Florida*
> *Realtors®*200 South Monroe Street, Tallahassee, FL 32301
> *talk:* 850.224.1400 x2505
> *direct: *850.521.3277
>
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>
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