A bill giving landlords and tenants the option to agree on a monthly fee instead of an upfront security deposit will head to a third reading, following lengthy discussion and debate on the House floor on Feb. 22.
Sponsored in the House by Rep. Jim Mooney, R-Islamorada, House Bill 537/Senate Bill 884 gives landlords the ability to collect monthly fees from a tenant who might not have money saved up for a security deposit. Instead of the tenant paying a security deposit equating to a month’s worth of rent, a landlord could choose to allow the tenant to pay a fee each month.
“Landlords who wish to reduce move-in costs for their properties and offer 0 deposit rentals clearly have that option. But it’s always an option,” Mooney said on the floor. “It’s a landlord-option, tenant-option bill with no mandates to anyone.”
Tenants can terminate the monthly fee any time and instead pay the full security deposit, according to legislation.
A tenant who pays a security deposit upfront could get that money back under current security deposit rules, so long as there’s no damage to the apartment. That money is required to be secured in a certain kind of bank account.
Those who choose to pay the monthly fee, however, wouldn’t get that money back. Money collected by the landlords through the fee can be used at their discretion, such as insurance. Mooney said he recommends landlords purchase insurance with the fees they collect. Different insurance providers, like Assurant, LeaseLock and Rhino offer different levels of coverage.
Rep. Ann Eskomani, D-Orlando, took issue with landlords’ pocketing those fees.
“Why are we charging a nonrefundable fee instead of doing a monthly deposit requirement? Then the person can get it back at the end if there are no damages,” she said.
In response, Mooney reiterated the challenges for those who need to put up first and last months’ rent plus a security deposit in order to move in. In Key West, average rents are $2,500 for a one-bedroom, one-bathroom apartment. Renters wouldn’t get the monthly fee back, but they would keep money needed for an upfront security deposit.
“If time comes down the road and you get a bonus and you want to give that landlord that deposit in cash, you immediately opt out of the program,” he said.
There’s no cap on fees in lieu of security deposits in the bill, but Mooney said they range anywhere from $11 to $25 a month.
Per bill language, the fee is not a security deposit and does not absolve the tenant of any obligations under the rental agreement, including paying rent as it becomes due and any costs and damages beyond normal wear and tear that the tenant may cause.
MOORINGS BILL PROGRESSES
A vessel anchoring bill providing 100 new moorings for public use within a mile of Key West Bight City Dock is moving ahead following a 22-0 vote in the State Affairs Committee on Feb. 21. County Commissioner Craig Cates told Keys Weekly on Feb. 21 that the so-called liveaboard bill was proceeding smoothly through the legislative committee process “and has passed each committee unanimously, so it shouldn’t have any problem passing the full House and Senate.”
Cates said the bill provides for an additional 100 mooring sites to be installed behind Wisteria Island off Key West. The requirements in the bill, to make a liveaboard vessel that is not in a managed mooring field move every 90 days, will not be enforced until the new moorings are in place and people have an opportunity to move to a secure mooring, Cates said.
House Bill 1065/Senate Bill 1432 has sparked opposition among liveaboard boaters in Key West, who say the requirement that they move is a tremendous hardship to the boating community, and could lead to increased environmental damage to seagrass and other habitats.
COMMITTEE PASSES HOUSING BILLA bill authorizing 50 units of affordable housing to be constructed for employees of the Monroe County Sheriff’s Office and other personnel is also moving forward. The House State Affairs Committee voted 22-0 on House Bill 1499 to create an exemption to Key West’s building permit allocation system to provide much needed housing for first responders. Per the bill, construction must be consistent with the local comprehensive plan. Additionally, the sheriff’s office must have a hurricane evacuation plan that requires all occupants required to evacuate to be evacuated 48 hours in advance of tropical force winds.
