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.
Democrats are just following orders of their paymasters – cracking down on small landlords and setting up Larry Fink/Blackrock to snap up the properties of small-timers after they are driven out of the business. Big woke business plays DEI ball and donates big $$$$ to Democrats. Small time renters too much like herding cats and support the wrong types of candidates, besides.
That’s a very good point, ” the landlord must also include any interest accrued”. Just how much interest have landlords collected off these interest rates from someone else’s security deposit over the years?
Evidently she hasn’t been a landlord and have been taken advantage of.
Im fine first month rent and security deposit .Drop the last month rent.
Evidently she hasn’t been a landlord and have been taken advantage of.
Im fine first month rent and security deposit .Drop the last month rent.
This is not a duplicate comment.
Personally, having rented property for many years, I can honestly say that the very best has resulted in coming close to breaking even on occasion. Most investors of rental property are after a long term investment for distant resale and hope that the renters don’t render it useless in the process, which is usually the case. For me, it was a way to ensure that my children would not have to wait half their lives before home ownership, not profit. The damages always exceeded the deposits tenfold. And no recourse. Try it out for yourself if you think it is so lucrative. But it is a lot of work.
Tried being a landlord once. Never again. First tenant absolutely trashed the place.
And after the COVID national ‘rent holiday’ paid for by landlords, I don’t know why anyone would bother trying.
Excellent comments. I especially liked these lines: “The damages always exceeded the deposits tenfold. And no recourse.” Amen, brother! Any landlord of many years has so many stories about crazy tenants that we could write a book about it.
Another wealth redistribution from the hardworking, functional producers to the dysfunctional delinquents. Honest people will necessarily end up paying more to make up for losses to the irresponsible. And as Apu says above, ultimately big corporate democrat donors will snap up the properties, lining Gray-Jackson’s pockets with their ‘campaign contributions’ to keep their lackey in office.
What another great idea! Destroy the economy shut the economy down.
We need more housing, not less! I would like to see the senators checkbook, I bet he can’t even balance his own checkbook.
Do illegal aliens living 10 deep in a 2 bedroom apartment have to split the security deposit, or is the government paying it with our tax dollars?
Kiss, keep it simple stupid we don’t need more laws for renters. It’s their property they can rent it however they want and if you don’t want to rent and don’t want to pay their fees, then you can go rent someplace else here again government is in private business knows, and everything gets into wise up, failing, and being a big expensive mess.
I’m shocked! Shocked I say, that these left wing democrats want to raise taxes, force the private sector and private citizens to do their bidding.
And our housing issues will get worse if this crap passes.
Stupid as it is, it will probably pass with strong “republican” support.
What? Most renters are good, but t I’ve heard some horror stories from landlords that would make your head spin. Every thing that could be screwed off stolen, including recessed lighting receptacles. Sinks torn out and let’s not even talk about the bathrooms. 😳 she needs to keep government out of that business. They already have laws about kicking a renter out for property destruction. It took 4 months. Lots of time to strip the apartment. This will make the rental market in Anchorage get small. Many may decide to sell since they can make more money on that.
More government intrusion into private enterprise that will result in the people taking all the risk are enslaved by those with ZERO investment. If the renter doesn’t want to pay what the landlord wants, they can go find a different landlord to deal with, Elvi has no business dictating private emterprise.
Since when has Peoples State Senator Elvi Gray-Jackson, Democrat from Anchorage, given a damn about what renters, or anyone else for that matter, can afford?
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Only a hardened cynic would ask whether this is all about stifling private competion against Anchorage Assemblywoman Zaletel’s homeless-industrial complex.
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Elvi wants to force more risk on smaller, competing Section 8 housing owners by limiting how much they can recover from tenants who wreck their property.
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Small property owners can’t afford to stay in business if tenants have no monetary incentive to stop wrecking their property, so they sell out to… guess whom?
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Hope Governor D. doesn’t run out of veto pens.
If you’re a landlord, those security payments go into an escrow account. When I worked years ago, they were no interest bearing.
Property maintenance man here. I love renters. Never out of work. I feel for the ones that keep up their properties but have little for the slumlords and let me tell you there are many.
Everyone knows only blackrock is allowed to own property.
I am usually liberal on issues. This proposed law is not fair. The landlord needs protection if they get stiffed.
Who is securing and defending all of the US Constitutional rights of we the people? Who has a written oath on file to do so in order to receive the beneficial paycheck from the public trust funds? What are some of the rights to be secured and defended by occupiers of emoluments in Juneau? We have the rights to our personal property, rights to personal security, rights to personal liberties. – rights given by God and even preserved for us by ancient Roman laws. We have the RIGHT to equivalent damages when usurped by tyrants or usurpers of any stripe. When usurpers lapse into tyranny they must be reacquainted with the law of our fundamental rights. Any power arises from the consent of we the people. I do not consent to usurpation.
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