SF 463 (LSB 1901SV (2) 88)

SENATE FILE 463

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO SSB 1053)

A BILL FOR

An Act relating to landlord remedies and procedures relating to failure to timely pay rent and forcible entry and detainer.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 562A.9, subsection 4, Code 2019, is amended to read as follows:
   4.  For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month. For rental agreements in which the rent is greater than seven hundred dollars per month but less than one thousand four hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.  For rental agreements in which the rent is at least one thousand four hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds two percent of the rent per day or a total amount of ten percent of the rent per month.
    Sec. 2.  Section 562B.10, subsection 4, Code 2019, is amended to read as follows:
   4.  For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month. For rental agreements in which the rent is greater than seven hundred dollars per month but less than one thousand four hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.  For rental agreements in which the rent is at least one thousand four hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds two percent of the rent per day or a total amount of ten percent of the rent per month.
    Sec. 3.  Section 648.5, subsection 1, Code 2019, is amended to read as follows:
   1.  An action for forcible entry and detainer shall be brought in a county where all or part of the premises is located. Such an action shall be tried as an equitable action. Upon receipt of the petition, the court shall set a date, time, and place for hearing. The court shall set the date of hearing no later than eight days from the filing date, except that the court shall set a later hearing date no later than fifteen days from the date of filing if the plaintiff requests or consents to the later date of hearing.  The requirement regarding the setting of the initial hearing is not a jurisdictional requirement and does not affect the court’s subject matter jurisdiction to hear the action for forcible entry and detainer.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to landlord remedies and procedures relating to failure to timely pay rent and forcible entry and detainer.
   Current law caps late fees on rental agreements in which rent is greater than $700 per month at $20 per day and $100 per month.
   The bill allows a rental agreement to provide for late fees not to exceed 2 percent of the rent per day and 10 percent of the rent per month when rent exceeds $1,400 per month. 
   The bill also makes a procedural change relating to jurisdiction in actions for forcible entry and detainer.