Bill Summary – FastDemocracy

House File 2471 - Introduced
                                  HOUSE FILE 2471
                                  BY COMMITTEE ON JUDICIARY
                                  (SUCCESSOR TO HF 676)
                                  (SUCCESSOR TO HF 443)
                            A BILL FOR
An Act relating to the use of inventory checklists upon
  commencement and termination of residential tenancies and
  including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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                                H.F. 2471
    Section 1. NEW SECTION. 562A.11A Landlord and tenant
 inventory checklist.
    1. A landlord and tenant may agree to use a checklist to
 determine the condition of the dwelling unit upon commencement
 of and termination of a lease.
    2. If a landlord and tenant agree to use a checklist under
 this section, all of the following shall apply:
    a. The landlord shall provide the checklist to the tenant
 at the commencement of the tenancy. The landlord shall detail
 the condition of the dwelling unit and shall provide the tenant
 with a copy of the checklist. The checklist shall include
 all items that affect the habitability of the dwelling unit
 provided by the landlord at the commencement of the tenancy,
 including but not limited to flooring, window coverings,
 appliances, windows, furniture, walls, closets, shelves, paint,
 doors, plumbing fixtures, and electrical fixtures.
    b. The tenant may review the checklist, evaluate the
 condition of each item, record a description of each item
 on the checklist, and return the checklist to the landlord
 within three days of receipt. A tenant that does not return
 the checklist within three days of receipt shall be deemed to
 have forfeited all rights under this section. The landlord
 and tenant may extend this deadline by mutual agreement. A
 tenant’s provision of proof of mailing or other return of the
 checklist to the landlord shall be sufficient proof of receipt
 by the landlord.
    c. A checklist used under this section shall contain the
 following notice using not less than twelve point bold face
 type at the top of the first page:
    You should complete this inventory checklist, record a
 description of the condition of each item, and return it to the
 landlord within three days. Failure to do so will result in
 the forfeiture of your rights under Iowa Code section 562A.11A.
    d. At the termination of the tenancy, the landlord shall
 complete a termination inventory checklist by evaluating the
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                               H.F. 2471
 condition of each item, recording a description of each item’s
 condition, and delivering one copy of the checklist to the
 tenant as provided in section 562A.12, subsection 3, paragraph
 “a”.
    e. A landlord shall complete a termination checklist if
 a properly executed commencement checklist exists unless
 the tenant waives this requirement in writing prior to the
 termination of the tenancy.
    3. This section shall not apply to the rental of land upon
 which a mobile home, as defined in section 562B.7, may be
 placed.
    4. This section shall not be construed to create an
 obligation on a landlord to repair, replace, upgrade, or
 otherwise improve the dwelling unit or any item within the
 dwelling unit.
    5. A tenant is deemed to be in possession of a checklist if
 the checklist is hand delivered or electronically delivered to
 the tenant at the commencement of the tenancy.
    6. A subsequent checklist shall not be required for a
 renewal or extension of an existing tenancy.
    7. A landlord shall keep a copy of all commencement and
 termination checklists entered into under this section for a
 period of one year following the termination of the tenancy,
 or for such longer period as the landlord may be required to
 retain lease documents as may be required by law.
    8. A landlord that uses a checklist may collect a refundable
 deposit of an amount not to exceed one hundred fifty dollars.
 The landlord shall collect the deposit at such time that the
 tenant submits the rental application. The landlord may
 require the tenant to pay such deposit in the form of a check.
 If the tenant returns the checklist within the time required,
 the landlord shall return the check or other form of payment
 accepted by the landlord within three days. If the tenant
 fails to return the checklist the deposit shall be forfeited to
 the landlord.
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    9. A fully executed checklist under this section is presumed
 to be valid. Any damage not disclosed on the checklist,
 outside of ordinary wear and tear, is presumed to be the fault
 of the tenant.
    Sec. 2. Section 562A.12, subsection 3, paragraph a,
 unnumbered paragraph 1, Code 2022, is amended to read as
 follows:
    A landlord shall, within thirty days from the date of
 termination of the tenancy and receipt of the tenant’s mailing
 address or delivery instructions the end of the lease contract
 or whenever the unit is re-rented, whichever is first, return
 the rental deposit to the tenant or furnish to the tenant a
 copy of any termination inventory checklist required to be
 completed by the landlord under section 562A.11A, subsection
 2, paragraph “d”, and a written statement showing the specific
 reason for withholding of the rental deposit or any portion
 thereof. If the rental deposit or any portion of the rental
 deposit is withheld for the restoration of the dwelling unit,
 the statement shall specify the nature of the damages. The
 landlord may withhold from the rental deposit only such amounts
 as are reasonably necessary for the following reasons:
    Sec. 3. Section 562A.12, subsection 4, Code 2022, is amended
 to read as follows:
    4. A landlord who fails to provide a written statement
 and a copy of any termination inventory checklist required
 to be completed by the landlord under section 562A.11A,
 subsection 2, paragraph “d”, within thirty days of termination
 of the tenancy and receipt of the tenant’s mailing address or
 delivery instructions shall forfeit all rights to withhold
 any portion of the rental deposit. If no mailing address or
 instructions are provided to the landlord within one year from
 the termination of the tenancy the rental deposit shall revert
 to the landlord and the tenant will be deemed to have forfeited
 all rights to the rental deposit.
    Sec. 4. APPLICABILITY. This Act applies to tenancies
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commenced under chapter 562A on or after January 1, 2023.
                         EXPLANATION
         The inclusion of this explanation does not constitute agreement with
         the explanation’s substance by the members of the general assembly.
    This bill amends Iowa’s “Uniform Residential Landlord and
 Tenant Act” to allow a landlord to use inventory checklists
 both at the commencement and termination of tenancy for
 each dwelling unit. Inventory checklists are not required
 for a renewal or extension of an existing tenancy and the
 requirements of the bill do not apply to the rental of land
 upon which a mobile home, as defined in Code section 562B.7(6),
 may be placed. The checklist must include all items in
 the dwelling unit or on the premises owned by the landlord
 including but not limited to flooring, window coverings,
 appliances, windows, furniture, walls, closets, shelves, paint,
 doors, plumbing fixtures, and electrical fixtures. The tenant
 then reviews the checklist, evaluates the condition of each
 item, records a description of each item’s condition on the
 checklist, and returns the checklist to the landlord within
 three days after receiving the checklist.
    Under the bill, inventory checklists must be retained by the
 landlord for a period of one year following termination of the
 tenancy or as otherwise required by law. A landlord that uses
 a checklist may collect a refundable deposit no more than $150
 to be returned to the tenant at the return of the checklist
 within the required timeline. The landlord may require
 the deposit to be in the form of a check. A fully executed
 checklist shall be presumed valid and any damage not disclosed
 beyond ordinary wear and tear shall be presumed to be the fault
 of the tenant. At the termination of the tenancy, the landlord
 is required to complete a termination inventory checklist by
 evaluating the condition of each item, recording a description
 of each item’s condition on the checklist, and delivering a
 copy of the checklist to the tenant if the tenant had initially
 completed a checklist.
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                             H.F. 2471
  A landlord who fails to provide a copy of a termination
inventory checklist if required by the bill forfeits the right
to withhold any portion of the tenant’s rental deposit.
  The bill applies to tenancies commenced under Code chapter
562A on or after January 1, 2023.
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Statutes affected: 
Introduced: 562A.12, 562A.11A