Tennessee Senate Bill SB1893

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 47, Chapter 18 and Title 66, relative to residential rental housing fees.

Impact

If enacted, SB1893 will amend the Tennessee Code Annotated, specifically addressing residential rental housing fees. The law will establish significant limitations on the types of fees that landlords can charge, particularly regarding application fees, security deposits, and late payment charges. For instance, landlords may not charge more than $50 for application fees if they do not accept reusable screening reports, and security deposits will also be capped at one month's rent. This initiative is expected to encourage fairer rental practices and provide tenants with clearer information when seeking housing.

Summary

Senate Bill 1893, known as the 'Residential Rental Fee Transparency and Junk Fee Prohibition Act,' aims to enhance transparency in the rental housing market in Tennessee. The bill mandates that landlords, leasing companies, and management companies disclose all additional fees charged to prospective tenants aside from the base rent. Specifically, it requires landlords to inform applicants about the acceptance of reusable tenant screening reports and to clarify any application fees, indicating whether they are refundable. This legislation seeks to protect tenants from unexpected costs that may arise during the rental application process and aims to promote fair practices in the rental housing industry.

Contention

While many advocates support SB1893 for its potential to enhance tenant rights and prevent exploitative fees, some landlords and property management companies have raised concerns about the rigorous restrictions on fees. These stakeholders argue that the bill may impede their ability to manage costs associated with tenant screening and could lead to a more challenging rental market. Furthermore, the need for landlords to maintain operational flexibility in pricing policies has been cited as a critical point of contention during discussions surrounding the bill.