SF 2128 (LSB 5313XS (2) 90)

SENATE FILE 2128

BY  DICKEY

A BILL FOR

An Act relating to rental deposits by requiring certain disclosures by landlords when withholding rental deposits from tenants.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 562A.12, subsection 3, Code 2024, is amended to read as follows:
   3.  a.  A landlord shall, within thirty days from the date of termination of the tenancy and receipt of the tenant’s mailing address or delivery instructions, return the rental deposit to the tenant or furnish to the tenant a written statement showing the specific reason for withholding of the rental deposit or any portion thereof. If the rental deposit or any portion of the rental deposit is withheld for the restoration of the dwelling unit, the statement shall specify the nature of the damages. The landlord may withhold from the rental deposit only such amounts as are reasonably necessary for the following reasons:
   (1)  To remedy a tenant’s default in the payment of rent or of other funds due to the landlord pursuant to the rental agreement.
   (2)  To restore the dwelling unit to its condition at the commencement of the tenancy, ordinary wear and tear excepted.
   (3)  To recover expenses incurred in acquiring possession of the premises from a tenant who does not act in good faith in failing to surrender and vacate the premises upon noncompliance with the rental agreement and notification of such noncompliance pursuant to this chapter.
   b.  In an action concerning the rental deposit, the burden of proving, by a preponderance of the evidence, the reason for withholding all or any portion of the rental deposit shall be on the landlord.
   c.  A written statement from the landlord informing the tenant that the rental deposit is being withheld as required by paragraph “a” shall not be longer than one page and shall include all of the following:
   (1)  The amount being withheld.
   (2)  The tenant’s legal rights.
   (3)  The appeal process available to the tenant if the tenant disagrees with landlord’s reasons for withholding the rental deposit.
   (4)  If the rental deposit or any portion of the rental deposit is withheld for the restoration of the dwelling unit, the statement shall specify the nature of the damages.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill amends the “Uniform Residential Landlord and Tenant Act” to require a landlord to provide a tenant whose rental deposit is being withheld all of the following: why the deposit is being withheld; how much is being withheld; the legal rights available to the tenant; and appeal process if the tenant disagrees with the reasons behind the rental deposit being withheld. The bill also provides that the written statement shall not be longer than one page.