The bill amends the "Residential Landlord and Tenant Act" by introducing new provisions regarding rental agreements and security deposits. Notably, it allows landlords and tenants to include various terms in rental agreements, such as the disclosure of additional fees beyond rent, utility responsibilities, and requirements for renters insurance. If landlords fail to comply with these disclosure requirements, tenants can recover any undisclosed fees. Additionally, the bill specifies that tenants aged 65 or older can terminate their rental agreements to enter residential care facilities, and it outlines the conditions under which servicemembers can unilaterally terminate leases due to military service.

Furthermore, the bill increases the maximum allowable security deposit from one month to two months' worth of periodic rent. It mandates that upon termination of tenancy, landlords must return the security deposit minus any justified deductions for unpaid rent or damages, and they must provide a written notice detailing these deductions within 20 days. The bill also clarifies that tenants can pay their last month's rent or any other prepaid rent, ensuring that such payments are not prohibited. This act will take effect upon passage.