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House Study Bill 116 - IntroducedA Bill ForAn Act 1relating to late fees and procedures associated with
2rental agreements.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 562A.9, subsection 4, Code 2019, is
2amended to read as follows:
34. For rental agreements in which the rent does not exceed
4seven hundred dollars per month, a rental agreement shall not
5provide for a late fee that exceeds twelve dollars per day or a
6total amount of sixty dollars per month. For rental agreements
7in which the rent is greater than seven hundred dollars per
8month but less than one thousand four hundred dollars per
9month, a rental agreement shall not provide for a late fee that
10exceeds twenty dollars per day or a total amount of one hundred
11dollars per month. For rental agreements in which the rent is
12at least one thousand four hundred dollars per month, a rental
13agreement shall not provide for a late fee that exceeds thirty
14dollars per day or a total amount of one hundred fifty dollars
15per month.
16 Sec. 2. Section 562A.11, subsection 2, Code 2019, is amended
17by striking the subsection and inserting in lieu thereof the
18following:
192. A provision in a rental agreement prohibited by
20subsection 1 is unenforceable. If the landlord seeks to
21enforce the provision or accepts the tenant’s voluntary
22compliance with the provision, the court may award the tenant
23an amount not to exceed three months’ periodic rent and
24reasonable attorney fees.
25 Sec. 3. Section 562B.10, subsection 4, Code 2019, is amended
26to read as follows:
274. For rental agreements in which the rent does not exceed
28seven hundred dollars per month, a rental agreement shall not
29provide for a late fee that exceeds twelve dollars per day or a
30total amount of sixty dollars per month. For rental agreements
31in which the rent is greater than seven hundred dollars per
32month but less than one thousand four hundred dollars per
33month, a rental agreement shall not provide for a late fee that
34exceeds twenty dollars per day or a total amount of one hundred
35dollars per month. For rental agreements in which the rent is
-1-1at least one thousand four hundred dollars per month, a rental
2agreement shall not provide for a late fee that exceeds thirty
3dollars per day or a total amount of one hundred fifty dollars
4per month.
5 Sec. 4. Section 562B.11, subsection 2, Code 2019, is amended
6by striking the subsection and inserting in lieu thereof the
7following:
82. A provision in a rental agreement prohibited by
9subsection 1 is unenforceable. If the landlord seeks to
10enforce the provision or accepts the tenant’s voluntary
11compliance with the provision, the court may award the tenant
12an amount not to exceed three months’ periodic rent and
13reasonable attorney fees.
14 Sec. 5. Section 648.5, subsection 1, Code 2019, is amended
15to read as follows:
161. An action for forcible entry and detainer shall be
17brought in a county where all or part of the premises is
18located. Such an action shall be tried as an equitable action.
19Upon receipt of the petition, the court shall set a date,
20time, and place for hearing. The court shall set the date
21of hearing no later than eight days from the filing date,
22except that the court shall set a later hearing date no later
23than fifteen days from the date of filing if the plaintiff
24requests or consents to the later date of hearing. The
25requirement regarding the setting of the initial hearing is not
26a jurisdictional requirement and does not affect the court’s
27subject matter jurisdiction to hear the action for forcible
28entry and detainer.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32Current law caps late fees on rental agreements in which
33rent is greater than $700 per month at $20 per day and $100
34per month. Current law also allows an aggrieved party to
35recover actual damages in certain situations when a prohibited
-2-1provision is willingly or knowingly used in a rental agreement.
2This bill allows a rental agreement to provide for late
3fees not to exceed $20 per day and $100 per month for rental
4agreements in which rent is greater than $700 per month but
5not more than $1,400 per month. When rent exceeds $1,400 per
6month, a rental agreement may provide for late fees of no
7more than $30 per day and $150 per month. Furthermore, if
8a landlord seeks to enforce or accepts a tenant’s voluntary
9compliance with a prohibited provision, the court may award the
10tenant an amount not to exceed three months’ periodic rent and
11reasonable attorney fees.
12The bill also makes a procedural change relating to
13jurisdiction in actions for forcible entry and detainer.
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2rental agreements.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 562A.9, subsection 4, Code 2019, is
2amended to read as follows:
34. For rental agreements in which the rent does not exceed
4seven hundred dollars per month, a rental agreement shall not
5provide for a late fee that exceeds twelve dollars per day or a
6total amount of sixty dollars per month. For rental agreements
7in which the rent is greater than seven hundred dollars per
8month but less than one thousand four hundred dollars per
9month, a rental agreement shall not provide for a late fee that
10exceeds twenty dollars per day or a total amount of one hundred
11dollars per month. For rental agreements in which the rent is
12at least one thousand four hundred dollars per month, a rental
13agreement shall not provide for a late fee that exceeds thirty
14dollars per day or a total amount of one hundred fifty dollars
15per month.
16 Sec. 2. Section 562A.11, subsection 2, Code 2019, is amended
17by striking the subsection and inserting in lieu thereof the
18following:
192. A provision in a rental agreement prohibited by
20subsection 1 is unenforceable. If the landlord seeks to
21enforce the provision or accepts the tenant’s voluntary
22compliance with the provision, the court may award the tenant
23an amount not to exceed three months’ periodic rent and
24reasonable attorney fees.
25 Sec. 3. Section 562B.10, subsection 4, Code 2019, is amended
26to read as follows:
274. For rental agreements in which the rent does not exceed
28seven hundred dollars per month, a rental agreement shall not
29provide for a late fee that exceeds twelve dollars per day or a
30total amount of sixty dollars per month. For rental agreements
31in which the rent is greater than seven hundred dollars per
32month but less than one thousand four hundred dollars per
33month, a rental agreement shall not provide for a late fee that
34exceeds twenty dollars per day or a total amount of one hundred
35dollars per month. For rental agreements in which the rent is
-1-1at least one thousand four hundred dollars per month, a rental
2agreement shall not provide for a late fee that exceeds thirty
3dollars per day or a total amount of one hundred fifty dollars
4per month.
5 Sec. 4. Section 562B.11, subsection 2, Code 2019, is amended
6by striking the subsection and inserting in lieu thereof the
7following:
82. A provision in a rental agreement prohibited by
9subsection 1 is unenforceable. If the landlord seeks to
10enforce the provision or accepts the tenant’s voluntary
11compliance with the provision, the court may award the tenant
12an amount not to exceed three months’ periodic rent and
13reasonable attorney fees.
14 Sec. 5. Section 648.5, subsection 1, Code 2019, is amended
15to read as follows:
161. An action for forcible entry and detainer shall be
17brought in a county where all or part of the premises is
18located. Such an action shall be tried as an equitable action.
19Upon receipt of the petition, the court shall set a date,
20time, and place for hearing. The court shall set the date
21of hearing no later than eight days from the filing date,
22except that the court shall set a later hearing date no later
23than fifteen days from the date of filing if the plaintiff
24requests or consents to the later date of hearing. The
25requirement regarding the setting of the initial hearing is not
26a jurisdictional requirement and does not affect the court’s
27subject matter jurisdiction to hear the action for forcible
28entry and detainer.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32Current law caps late fees on rental agreements in which
33rent is greater than $700 per month at $20 per day and $100
34per month. Current law also allows an aggrieved party to
35recover actual damages in certain situations when a prohibited
-2-1provision is willingly or knowingly used in a rental agreement.
2This bill allows a rental agreement to provide for late
3fees not to exceed $20 per day and $100 per month for rental
4agreements in which rent is greater than $700 per month but
5not more than $1,400 per month. When rent exceeds $1,400 per
6month, a rental agreement may provide for late fees of no
7more than $30 per day and $150 per month. Furthermore, if
8a landlord seeks to enforce or accepts a tenant’s voluntary
9compliance with a prohibited provision, the court may award the
10tenant an amount not to exceed three months’ periodic rent and
11reasonable attorney fees.
12The bill also makes a procedural change relating to
13jurisdiction in actions for forcible entry and detainer.
-3-js/rn