Effective Date: August 7th, 2023
Key points:
Prohibited Clauses in Rental Agreements:
Penalties Related to Eviction Notices: Rental agreements must not include clauses that assign penalties to tenants stemming from an eviction notice or action resulting from a lease violation.
Unilateral Fee-Shifting Provisions: Clauses that award attorney fees and court costs exclusively to one party are prohibited. Any fee-shifting clause must allow the prevailing party to recover reasonable attorney fees, as determined by the court.
Waivers of Fundamental Tenant Rights: Agreements cannot include waivers of:
The right to a jury trial (unless agreed upon during a possession hearing).
The ability to participate in joint, class, or collective actions related to the tenancy.
The implied covenant of good faith and fair dealing.
The implied covenant of quiet enjoyment, except where disturbances are beyond the landlord's reasonable control.
Fees for Failure to Provide Nonrenewal Notice: Landlords cannot impose fees, damages, or penalties on tenants for failing to provide notice of nonrenewal before the lease ends, except for actual losses incurred due to the lack of notice.
Characterization of Charges as Rent: Only the set monthly payment for occupancy can be characterized as "rent." Other fees, such as utilities or service charges, cannot be labeled as rent, limiting the remedies available for their collection.
Third-Party Service Fee Markups: Rental agreements cannot require tenants to pay marked-up fees for services billed to the landlord by third parties, unless the markup does not exceed 2% of the landlord's cost or a total of $10 per month, but not both.
Evictions Based on Utility Nonpayment: Landlords participating in voucher or subsidy programs cannot pursue eviction actions solely based on a tenant's nonpayment of utilities.
This legislation aims to prevent unfair lease terms and ensure that tenants retain essential rights during their tenancy.
