HB23-1095
Prohibiting the inclusion of certain provisions in written rental agreements.
According to current law, a written rental agreement cannot include:
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Liquidated damages clauses that assign costs to a party arising from an eviction notice or eviction action for a violation of the rental agreement; or
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Fee-shifting clauses that award attorney fees and court costs to one party only. In a court dispute, any fee-shifting clause in a rental agreement must award attorney fees to the prevailing party.
The bill amends these prohibitions so that:
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Rental agreements must not contain any clauses that impose penalties on a party if the other party violates the agreement or receives an eviction notice;
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A fee-shifting clause in a rental agreement must award attorney fees only after determining that the prevailing party prevailed and the fee is reasonable.
The bill also prohibits a written rental agreement from including:
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There is a waiver of the right to a jury trial; the right to pursue, bring, join, litigate, or support certain class or collective claims; the implied covenant of good faith and fair dealing; or the implied covenant of quiet enjoyment;
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If a tenant fails to provide notice of nonrenewal of a rental agreement prior to the end of the agreement, a fee, damages, or penalty will be attached;
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All amounts and fees set forth in the rental agreement, except the set monthly payment for occupancy, are considered “rent” for which all remedies to collect rent, including eviction, are available;
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A provision that entails a tenant paying a fee over the amount the landlord paid for a service billed by a third party or that purports to recoup costs incurred by the landlord for processing such services.
