[RPPTL Leasing Committee] CS/HB 537 Fees in Lieu of Security Deposits

[RPPTL Real Estate Leasing Committee]

This bill opens the door to predatory unlimited fees that will be retained by the property manager and the property manager can then self insure a sum of money, "deposit", for the owner.   The FLOIR may have a serious problem with this "insurance" product.

I know of property managers right now that are charging the tenant $150 a month (instead of collecting a deposit)  and guaranteeing $1000 to the property owner as a "deposit".  The property manager pockets the $150 a month in hopes that there will be no damages. This fee is often carried on to renewals of the lease and the tenant keeps paying and paying.

The wording in paragraph 6 is strange.  It is assuming multifamily.

I'm all for the rights of landlords and property managers to use the products out there like Rhino, Obligo and Leaselock but this bill is wide open for abuse.

I attached the Texas law.    This bill is being pushed by one of the providers of security deposit alternatives.

Harry Heist

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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: Friday, January 28, 2022 12:18 PM
To: RPPTL Real Estate Leasing Committee <landten at lists.flabarrpptl.org>
Subject: [RPPTL Leasing Committee] CS/HB 537 Fees in Lieu of Security Deposits

Good afternoon everyone and happy Friday!

The attached bill was discussed during our weekly Legislative Committee Zoom meeting this morning. It appears that it currently has momentum for passage.   I recall that there was some discussion about this on the listserv and we have been asked whether the RP Leasing Committee would like to pursue technical advice for this bill.  This involves providing an outline written in plain English that identities the issues and proposed solutions. Please let me know if you're interested in participating in providing this technical advice.  Please note that any memo we draft may be forwarded to our lobbyists and legislative staff or legislators, so keep this in mind if you agree to assist.

https://www.flsenate.gov/Session/Bill/2022/537/?Tab=BillText

Summary:
Fees in Lieu of Security Deposits:  CS/HB 537 by Representative Mooney and CS/SB 884 by Senator Boyd are companion measures that authorized a landlord to offer a tenant option to pay a fee in lieu of a security deposit and provides implementing procedures regarding the options.  CS/HB 537 received 2 committee references and has been amended and approved by the first committee. CS/SB 884 also received 3 committee references and has been amended and approved by the first committee.

Thank you!

Brenda B. Ezell
[BCS]
[cid:image002.png at 01D81443.840760B0]
3560 Cardinal Point Drive, Suite 202
Jacksonville, FL 32257
904.432.3200 (o)
904-432-3201 (f)
www.ezellfirmpa.com<http://www.ezellfirmpa.com/>

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