Substitute House Bill No. 5359 introduces significant amendments to residential rental agreements, set to take effect on October 1, 2026, for agreements entered into or renewed after that date. The bill mandates that landlords provide at least one method for tenants to pay rent without incurring additional fees, thereby prohibiting the exclusive requirement of electronic funds transfers for rent or security deposits. It also disallows clauses in rental agreements that impose increased rent or specific payments after the agreement expires or higher rent for breaches if tenants are already paying a reduced rate. Additionally, the bill requires the Department of Housing to publish an updated standardized rental terms summary form by July 1, 2026, which must be provided in both English and Spanish as the first page of any written rental agreement.

Moreover, starting April 1, 2026, landlords must include a completed rental terms summary form in all written rental agreements, with penalties for non-compliance amounting to one month's rent and potential attorney's fees for tenants. The bill also introduces new requirements for landlords advertising rental units, mandating that all periodic fees, charges, or costs be included in the advertised rent, and that any monthly default fees be prorated. The provisions related to the rental terms summary form will take effect upon passage, while the other requirements will be enforced starting October 1, 2026.

Statutes affected:
Raised Bill:
HSG Joint Favorable:
File No. 143: