Existing law requires a landlord and a tenant to perform certain obligations with respect to a lease of real property. (NRS 118A.240-118A.300) As part of a lease of real property, a landlord may require a tenant to pay a security deposit, defined as a payment, deposit, fee or charge used by the landlord to: (1) remedy a default in the payment of rent by the tenant; (2) repair damage to the premises other than normal wear; and (3) clean the dwelling unit. (NRS 118A.240, 118A.242) Section 5 of this bill defines the term “security deposit” to mean a deposit made in cash or by any other acceptable manner to a landlord for any of the following purposes: (1) remedying any default of the tenant in the payment of periodic rent, including, without limitation, the cost of any fee for the late payment of rent; (2) repairing damage to the premises caused by the tenant other than normal wear; and (3) cleaning the unit. Section 28 of this bill repeals the existing definition of “security deposit.” Existing law requires a landlord to return a security deposit, or any remaining portion thereof, within 30 days after the termination of the tenancy and makes the landlord liable for certain amounts for failing to return the security deposit within this period. (NRS 118A.242) Section 15 of this bill: (1) requires a landlord to deliver an itemized, written accounting of the disposition of the security deposit or surety bond, or a combination thereof in certain circumstances; (2) prescribes how delivery of the itemized, written accounting must be effectuated by the landlord; and (3) makes the landlord liable for certain amounts for failing to deliver the itemized, written accounting. Section 15 also provides that in any action relating to an amount claimed of a security deposit for repairing damage to the premises caused by the tenant, the landlord has the burden of proving: (1) that the damage to the premises occurred during the tenancy; and (2) the actual costs of repair. Existing law defines “normal wear” as deterioration which occurs without negligence, carelessness or abuse of the premises, equipment or chattels by the tenant, a member of the household of the tenant or another person on the premises with the consent of the tenant. (NRS 118A.110) Section 11 of this bill revises the definition of “normal wear” to mean expected deterioration which occurs during the course of a tenancy from the normal use of the premises by such persons. Existing law requires written rental agreements to contain certain provisions, including, without limitation, provisions concerning: (1) the amount of rent and the manner and time of its payment; and (2) fees which are required and the purposes for which they are required. (NRS 118A.200) Existing law authorizes a landlord to charge a reasonable fee for the late payment of rent. (NRS 118A.210) Section 12 of this bill requires such rental agreements to include a grace period for the late payment of rent. Section 13 of this bill prohibits a landlord from charging the fee for the late payment of rent until the expiration of the grace period set forth in the rental agreement. Section 4 of this bill defines the term “grace period” for such purposes. Section 12 also: (1) requires a written rental agreement to include a separate appendix that contains an explanation of each fee that may be charged during the term of the rental agreement and the purpose for which the fee may be charged; and (2) makes it unlawful for a landlord or other person authorized to enter into a rental agreement on his or her behalf to charge a tenant a fee in an amount or for any purpose that is not set forth in the appendix. Finally, section 12 requires a written rental agreement to also include a separate appendix that contains an explanation of the rights of the tenant pursuant to federal and state law and local ordinances. Existing law places certain prohibitions on rental agreements. (NRS 118A.220) Section 14 of this bill prohibits rental agreements from requiring tenants to pay any fee, fine or cost except those which are: (1) authorized by statute; or (2) actual and reasonable. Sections 12, 19-21 and 24 of this bill make conforming changes relating to the limitations on fees, fines and costs. Section 7 of this bill authorizes a landlord to charge a fee for the eviction of a tenant. Section 6 of this bill requires a landlord who collects from a prospective tenant any fee to apply to rent a dwelling unit to refund the fee if the landlord: (1) rents the dwelling unit to a different prospective tenant; and (2) does not conduct the activity for which the fee was collected. Section 6 further prohibits a landlord from collecting an application fee, a fee to obtain a credit report or a fee to obtain a background check for a minor who is a member of the household of the prospective tenant. Section 8 of this bill prohibits a landlord from transferring, selling, assigning or reporting to certain agencies any amount owed by the tenant, unless the landlord first delivers to the tenant an itemized, written accounting of all outstanding amounts owed by the tenant. Section 8.5 of this bill requires any action for the enforcement of any provision of a rental agreement to be brought: (1) not later than 2 years after the termination of the tenancy; and (2) as a small claims action, if certain jurisdictional limits apply to the amount owed by the tenant. Section 9 of this bill provides that if a landlord changes his or her agent, broker or property management company, the landlord or the new agent, broker or company is required to send certain information to the tenant within 10 business days after the change. Existing law prohibits a landlord from increasing the rent of a tenant unless the tenant is served with advance notice of the increase. (NRS 118A.300) Section 18 of this bill similarly prohibits a landlord from increasing certain fees, fines and costs charged to the tenant unless the tenant is served with advance notice of the increase. Existing law provides that if a tenant's failure to perform basic obligations can be remedied by cleaning and the tenant fails to comply with a request to remedy such failure in a timely manner, the landlord may enter the dwelling unit, cause the work to be done and bill the tenant. (NRS 118A.440) Section 22 of this bill deletes this provision of existing law. Existing law requires a tenant to be served with certain notices relating to evictions. Existing law also provides that certain notices may be served by an agent of an attorney who is licensed in this State if: (1) the attorney has been retained by the landlord in certain actions; and (2) the agent is acting at the direction and under the direct supervision of the attorney. (NRS 40.280) In addition to the existing requirements concerning such agents, section 25 of this bill prohibits the agent from being employed as a property manager in this State. Existing law authorizes a nongovernmental legal or commercial entity to be represented by its director, officer or employee in an action in small claims court. (NRS 73.012) Similarly, section 26 of this bill authorizes a landlord to be represented by his or her agent in a small claims action. Section 26.5 of this bill provides that the amendatory provisions of this bill do not apply to a tenant of a dwelling unit that is a manufactured home, or on the premises of a manufactured home lot or a manufactured home park. Finally, section 27 of this bill provides that a rental agreement entered into before the effective date of this bill is binding upon the parties and may be enforced on or after that date, regardless of whether the provisions of the rental agreement conflict with the amendatory provisions of this bill.

Statutes affected:
As Introduced: 118.101, 118A.020, 118A.110, 118A.200, 118A.210, 118A.220, 118A.242, 118A.244, 118A.250, 118A.300, 118A.355, 118A.370, 118A.380, 118A.440, 40.251, 40.253, 40.280, 73.012, 118A.240
Reprint 1: 118.101, 118A.020, 118A.110, 118A.200, 118A.210, 118A.220, 118A.242, 118A.300, 118A.355, 118A.370, 118A.380, 118A.440, 40.253, 40.280, 73.012, 118A.240
Reprint 2: 118.101, 118A.020, 118A.110, 118A.200, 118A.210, 118A.220, 118A.242, 118A.300, 118A.355, 118A.370, 118A.380, 118A.440, 40.253, 40.280, 73.012, 118A.240
As Enrolled: 118.101, 118A.020, 118A.110, 118A.200, 118A.210, 118A.220, 118A.242, 118A.300, 118A.355, 118A.370, 118A.380, 118A.440, 40.253, 40.280, 73.012, 118A.240
BDR: 118.101, 118A.020, 118A.110, 118A.200, 118A.210, 118A.220, 118A.242, 118A.244, 118A.250, 118A.300, 118A.355, 118A.370, 118A.380, 118A.440, 40.251, 40.253, 40.280, 73.012, 118A.240