Legislators Eye Renter security deposits – gotech daily

According to the Wall Street Journal, lawmakers in several states are considering redesigning the often troublesome structure of security deposits, which adversely affects tenants with less financial resources.

Insurance policies that would replace traditional prepayments are an alternative that is being considered by both industry and government.

Legislators in New York, Ohio and Virginia have all introduced security-focused laws designed to help tenants in markets where there are often no designated, affordable, and low-income homes.

Alabama, Connecticut and New Hampshire officials say they will follow suit this year with a similar legislative approach. California, New York and Oregon also have new tenant-driven laws to limit rent increases and protect individuals from evictions.

Because other changes are causing investors to disrupt current leasing business models, industry source Apartment List states that rents rose 36% nationwide in the 2010s. Up to a quarter of all tenants in the United States invest 50% or more of their monthly expenses in rent.

“For a significant number of people living in Cincinnati, a two-bedroom deposit would match or exceed the total of their savings,” said Cincinnati City Council, P.G. Customs field. “Paying $ 1,000 in advance is a significant hassle for some.”

Lease change lawyers point out how the local economy could be stimulated with larger amounts of local residents’ funds that are not tied to the landlord’s deposit.

“We have been looking for all possible options to enable our workers to continue living here,” said supporter Ryan Coonerty, a district supervisor in Santa Cruz County, California. “Getting a few thousand dollars in your pocket can make a big difference.”

Some landlords have let tenants take other precautions, including insurance, rather than depositing conventional cash. However, other landlords note that these alternative plans could expose them to long litigation and high insurance company costs.

“Now I’m in a completely different area,” said Charles Tassell, chief operating officer of the National Real Estate Investors Association. “I have to take care of an insurance claim and involve my lawyers. And they have their expensive lawyers in the house.”

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