More real estate crackdown from Senate Democrats

Sen. Elvi Gray-Jackson, a Democrat from Anchorage, has a real estate bill that puts further restrictions on landlords, adding more financial risk to those who own property by not allowing landlords to collect one month rent in advance.

Senate Bill 169 says that landlords may not demand prepaid rent or security deposits in an amount in excess of one-half of one month’s rent. Current law limits the amount of prepaid rents or deposits to two months.

The reason there’s first and last months rent is so that landlords don’t get stiffed if someone doesn’t pay their rent. Tenants can’t be kicked out without a 30-day notice for nonpayment.

The law would make Alaska an outlier, in a category by itself in forcing landlords to accept more financial risk.

Currently, other states have far less onerous limits, according to ipropertymanagement.com:

Landlords in Delaware, Iowa, Kansas, Missouri, Nebraska, New Mexico, and Washington D.C can collect the maximum security deposit in addition to first and last months’ rent.

There is no limit to the security deposit or prepaid rent that a landlord can collect upfront in Florida, Georgia, Illinois, Idaho, Indiana, Kentucky, Louisiana, Minnesota, Mississippi, Montana, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Vermont, and West Virginia, Wisconsin, and Wyoming.

Florida statute requires a landlord to return a tenant’s deposit within 15 days after they move out. In addition, the landlord must also include any interest accrued. If there are deductions, the landlord must notify the renter within 30 days of their intention.

In Hawaii, in addition to the first month’s rent, landlords can only collect up to one additional month’s rent in advance, whether collected as a “security deposit” or “last month’s rent.”

In Maine, the security deposit plus last month’s rent cannot exceed the security deposit limit, which is three months’ rent for a mobile home and two months’ rent for other types of housing.

In Maryland, in addition to the first month’s rent, landlords can only collect up to two additional months’ rent in advance, whether collected as a “security deposit” or “security deposit plus last month’s rent.”

Landlords in Massachusetts can collect the maximum security deposit in addition to first and last months’ rent. If last month’s rent is collected in advance, it must be equal to the first month and the landlord must provide a receipt.

In Michigan, in addition to the first month’s rent, landlords can only collect an additional one and one-half months’ rent in advance, whether collected as a “security deposit” or “security deposit plus last month’s rent.”

In Nevada, in addition to the first month’s rent, landlords can only collect an additional three months’ rent in advance, whether collected as a “security deposit” or “security deposit plus last month’s rent.”

In New Hampshire, in addition to the first month’s rent, landlords can only collect up to one additional month’s rent in advance, whether collected as a “security deposit” or “last month’s rent.”

In New Jersey, in addition to the first month’s rent, landlords can only collect an additional one and one-half months’ rent in advance, whether collected as a “security deposit” or “security deposit plus last month’s rent.”

In New York, in addition to the first month’s rent, landlords can only collect up to one additional month’s rent in advance, whether collected as a “security deposit” or “last month’s rent.”

Landlords in North Carolina can collect the maximum security deposit in addition to first and last months’ rent.

In Pennsylvania, in addition to the first month’s rent, landlords must not collect more than two additional months’ rent whether collected as a “security deposit” or “security deposit plus last month’s rent” during the first year of the lease term. During the second and later years of the tenancy, the security deposit plus any prepaid rent held by the landlord cannot exceed one month’s rent.

In South Carolina, in addition to the first month’s rent, landlords can only collect an additional one month’s rent in advance, whether collected as a “security deposit” or “last month’s rent.” However, if the rental unit is furnished over a value of $5,000, the security deposit plus last month’s rent can total up to two months’ rent.

Landlords in South Dakota can collect the maximum security deposit in addition to first and last months’ rent.

Landlords in Washington can collect the maximum security deposit in addition to first and last months’ rent. However, if they do, tenants must be permitted to pay in installments.

In Alaska, in addition to the first month’s rent, landlords can only collect up to two additional months’ rent in advance, whether collected as a “security deposit” or “security deposit plus last month’s rent.” However, if the monthly rent is greater than $2,000, there is no limit to the security deposit or prepaid rent. Gray-Jackson’s bill eliminates that $2,000 rent threshold.