Existing law establishes the Residential Landlord and Tenant Act, which governs rental agreements for dwelling units. The Act establishes certain obligations for landlords and tenants and provides certain remedies for landlords and tenants for violations of such obligations. (Chapter 118A of NRS) Section 4 of this bill prohibits, with certain exceptions, a landlord from increasing the rent payable by an existing tenant during: (1) the first year of a tenancy; and (2) any 12-month period by an amount that exceeds the cost-of-living increase published by the Housing Division of the Department of Business and Industry pursuant to section 3 of this bill. Section 4 also prohibits, with certain exceptions, a landlord from charging a prospective tenant: (1) if there was an existing tenant in the dwelling unit, a rent that exceeds the maximum amount the landlord was authorized to charge the existing tenant; and (2) if there was not an existing tenant, a rent that exceeds the amount for which the dwelling unit was advertised. Section 4 exempts certain dwelling units from these requirements. Section 5 of this bill authorizes a landlord to apply to the Housing Division for an exemption from the cost-of-living increase in order for the landlord to obtain a fair and reasonable rate of return on his or her property if: (1) an additional occupant is residing in the dwelling unit; (2) the landlord makes capital improvements to a dwelling unit that primarily benefit the tenant; (3) the landlord changes the amount and quality of housing services attributable to the dwelling unit and included in the rental agreement; (4) the amount of property taxes owed by the landlord decreases or increases; (5) a landlord or tenant makes uninsured repairs; or (6) any other increase necessary to provide the landlord with a just and reasonable return pursuant to the United States Constitution. Section 5 further: (1) requires the landlord to provide the tenant with a written notice if the landlord applies to the Division for an exemption from the cost-of-living increase; (2) authorizes the tenant to present evidence to support or oppose the application of the landlord; and (3) requires the Division to adopt regulations to carry out the provisions of section 5. Section 6 of this bill provides that if a landlord violates the requirements of section 4, the tenant may: (1) apply to the court for relief; (2) withhold any rent that becomes due without incurring late fees, charges for notice or any other charge or authorized fee; and (3) recover actual damages and receive an amount equal to 3 months' rent in addition to such actual damages. Under existing law, the tenant is also entitled to certain other remedies if the landlord engages in retaliatory conduct against the tenant for a good faith complaint regarding a violation of section 4. (NRS 118A.510) Existing law prohibits a landlord from taking certain retaliatory actions against a tenant. (NRS 118A.510) Section 6.5 of this bill prohibits a landlord from retaliating against a tenant by: (1) threatening to bring or bringing an action to recover possession of the dwelling unit; (2) causing the tenant to quit the dwelling unit involuntarily; (3) serving the tenant with notice to quit the dwelling unit; (4) serving the tenant with notice of a termination of the tenancy; (5) decreasing any housing services; or (6) increasing rent. Section 6.5 further: (1) provides a rebuttable presumption that a landlord acted in retaliation under certain circumstances; (2) authorizes a tenant to use evidence that a landlord acted in retaliation as a defense; and (3) authorizes a tenant to bring a claim against a landlord for retaliation. Section 3 requires the Housing Division to annually determine and publish on the Internet website of the Division the maximum cost-of-living increase for that calendar year, which must be equal to the increase in the Consumer Price Index for the region where the dwelling unit is located and which must not exceed 5 percent. Section 3 also requires the Division to: (1) issue a press release containing the maximum cost-of-living increase for that calendar year; and (2) maintain on its Internet website information relating to each such cost-of-living increase for at least 2 years. Sections 2 to 2.9 of this bill define terms related to increases in rent. Existing law prohibits a landlord from increasing the rent payable by a tenant unless the landlord serves the tenant with written notice of the increase: (1) for a periodic tenancy of 1 month or more, 60 days in advance of the first rental payment to be increased; or (2) for a periodic tenancy of less than 1 month, 30 days in advance of the first rental payment to be increased. (NRS 118A.300) Section 8 of this bill instead requires such notice for a periodic tenancy of 1 month or more to be served 90 days in advance of the first rental payment to be increased. Section 8 further requires that such notice include: (1) the amount of the increase; (2) the total amount of the new rent; (3) if the increase exceeds the cost-of-living increase, the reason the landlord is exempt from the requirements of section 4; and (4) the date on which the increase becomes effective.

Statutes affected:
As Introduced: 118A.020, 118A.300
Reprint 1: 118A.300
BDR: 118A.020, 118A.300