House File 26 - Introduced HOUSE FILE 26 BY LOHSE A BILL FOR An Act relating to the use of inventory checklists upon 1 commencement and termination of residential tenancies, and 2 including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1254YH (2) 90 cm/ns

H.F. 26 Section 1. NEW SECTION . 562A.11A Inventory checklist. 1 1. A landlord and tenant may agree to use a checklist to 2 determine the condition of the dwelling unit upon commencement 3 of and termination of a lease. 4 2. If a landlord and tenant agree to use a checklist under 5 this section, all of the following apply: 6 a. The landlord shall provide the checklist to the tenant 7 at the commencement of the tenancy. The landlord shall detail 8 the condition of the dwelling unit and shall provide the tenant 9 with a copy of the checklist. The checklist shall include 10 all items that affect the habitability of the dwelling unit 11 provided by the landlord at the commencement of the tenancy, 12 including but not limited to flooring, window coverings, 13 appliances, windows, furniture, walls, closets, shelves, paint, 14 doors, plumbing fixtures, and electrical fixtures. 15 b. The tenant may review the checklist, evaluate the 16 condition of each item, record a description of each item 17 on the checklist, and return the checklist to the landlord 18 within three days of receipt. A tenant that does not return 19 the checklist within three days of receipt shall be deemed to 20 have forfeited all rights under this section. The landlord 21 and tenant may extend this deadline by mutual agreement. A 22 tenant’s provision of proof of mailing or other return of the 23 checklist to the landlord shall be sufficient proof of receipt 24 by the landlord. 25 c. A checklist used under this section shall contain the 26 following notice using not less than twelve point boldface type 27 at the top of the first page: 28 You should complete this inventory checklist, record a 29 description of the condition of each item, and return it to the 30 landlord within three days. Failure to do so will result in 31 the forfeiture of your rights under Iowa Code section 562A.11A. 32 d. At the termination of the tenancy, the landlord shall 33 complete a termination inventory checklist by evaluating the 34 condition of each item, recording a description of each item’s 35 -1- LSB 1254YH (2) 90 cm/ns 1/ 5

H.F. 26 condition, and delivering one copy of the checklist to the 1 tenant as provided in section 562A.12, subsection 3, paragraph 2 “a” . 3 e. A landlord shall complete a termination checklist if 4 a properly executed commencement checklist exists unless 5 the tenant waives this requirement in writing prior to the 6 termination of the tenancy. 7 3. This section does not apply to the rental of land upon 8 which a mobile home, as defined in section 562B.7, may be 9 placed. 10 4. This section shall not be construed to create an 11 obligation on a landlord to repair, replace, upgrade, or 12 otherwise improve the dwelling unit or any item within the 13 dwelling unit. 14 5. A tenant is deemed to be in possession of a checklist if 15 the checklist is hand delivered or electronically delivered to 16 the tenant at the commencement of the tenancy. 17 6. A subsequent checklist shall not be required for a 18 renewal or extension of an existing tenancy. 19 7. A landlord shall keep a copy of all commencement and 20 termination checklists entered into under this section for a 21 period of one year following the termination of the tenancy, 22 or for such longer period as the landlord may be required to 23 retain lease documents as may be required by law. 24 8. A landlord that uses a checklist may collect a refundable 25 deposit of an amount not to exceed one hundred fifty dollars. 26 The landlord shall collect the deposit at such time that the 27 tenant submits the rental application. The landlord may 28 require the tenant to pay such deposit in the form of a check. 29 If the tenant returns the checklist within the time required, 30 the landlord shall return the check or other form of payment 31 accepted by the landlord within three days. If the tenant 32 fails to return the checklist the deposit shall be forfeited to 33 the landlord. 34 9. A fully executed checklist under this section is presumed 35 -2- LSB 1254YH (2) 90 cm/ns 2/ 5

H.F. 26 to be valid. Any damage not disclosed on the checklist, 1 outside of ordinary wear and tear, is presumed to be the fault 2 of the tenant. 3 Sec. 2. Section 562A.12, subsection 3, paragraph a, 4 unnumbered paragraph 1, Code 2023, is amended to read as 5 follows: 6 A landlord shall, within thirty days from the date of 7 termination of the tenancy and receipt of the tenant’s mailing 8 address or delivery instructions the end of the lease contract 9 or the date the unit is re-rented, whichever occurs first , 10 return the rental deposit to the tenant or furnish to the 11 tenant a copy of any termination inventory checklist required 12 to be completed by the landlord under section 562A.11A, 13 subsection 2, paragraph “d” , and a written statement showing the 14 specific reason for withholding of the rental deposit or any 15 portion thereof. If the rental deposit or any portion of the 16 rental deposit is withheld for the restoration of the dwelling 17 unit, the statement shall specify the nature of the damages. 18 The landlord may withhold from the rental deposit only such 19 amounts as are reasonably necessary for the following reasons: 20 Sec. 3. Section 562A.12, subsection 4, Code 2023, is amended 21 to read as follows: 22 4. A landlord who fails to provide a written statement 23 and a copy of any termination inventory checklist required 24 to be completed by the landlord under section 562A.11A, 25 subsection 2, paragraph “d” , within thirty days of termination 26 of the tenancy and receipt of the tenant’s mailing address or 27 delivery instructions shall forfeit all rights to withhold 28 any portion of the rental deposit. If no mailing address or 29 instructions are provided to the landlord within one year from 30 the termination of the tenancy the rental deposit shall revert 31 to the landlord and the tenant will be deemed to have forfeited 32 all rights to the rental deposit. 33 Sec. 4. APPLICABILITY. This Act applies to tenancies 34 commenced under chapter 562A on or after January 1, 2024. 35 -3- LSB 1254YH (2) 90 cm/ns 3/ 5

H.F. 26 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill amends Iowa’s “Uniform Residential Landlord and 4 Tenant Act” to allow a landlord to use inventory checklists 5 both at the commencement and termination of tenancy for 6 each dwelling unit. Inventory checklists are not required 7 for a renewal or extension of an existing tenancy and the 8 requirements of the bill do not apply to the rental of land 9 upon which a mobile home may be placed. The checklist must 10 include all items in the dwelling unit or on the premises owned 11 by the landlord including but not limited to flooring, window 12 coverings, appliances, windows, furniture, walls, closets, 13 shelves, paint, doors, plumbing fixtures, and electrical 14 fixtures. The tenant then reviews the checklist, evaluates the 15 condition of each item, records a description of each item’s 16 condition on the checklist, and returns the checklist to the 17 landlord within three days after receiving the checklist. 18 Under the bill, inventory checklists must be retained by the 19 landlord for a period of one year following termination of the 20 tenancy or as otherwise required by law. A landlord that uses 21 a checklist may collect a refundable deposit no more than $150 22 to be returned to the tenant at the return of the checklist 23 within the required timeline. The landlord may require 24 the deposit to be in the form of a check. A fully executed 25 checklist shall be presumed valid and any damage not disclosed 26 beyond ordinary wear and tear shall be presumed to be the fault 27 of the tenant. At the termination of the tenancy, the landlord 28 is required to complete a termination inventory checklist by 29 evaluating the condition of each item, recording a description 30 of each item’s condition on the checklist, and delivering a 31 copy of the checklist to the tenant if the tenant had initially 32 completed a checklist. 33 A landlord who fails to provide a copy of a termination 34 inventory checklist if required by the bill forfeits the right 35 -4- LSB 1254YH (2) 90 cm/ns 4/ 5

H.F. 26 to withhold any portion of the tenant’s rental deposit. 1 The bill applies to tenancies commenced under Code chapter 2 562A on or after January 1, 2024. 3 -5- LSB 1254YH (2) 90 cm/ns 5/ 5