HERNDON, VA - Legislation affecting security deposits has been making noise this year in local governments, reports the National Apartment Association (NAA) and Roost is following the headlines.
“Policymakers have responded by enacting measures that allow renters to apply their security deposit to rent and give them broad flexibility in paying these upfront costs,” NAA reports. “While well-intentioned, these approaches could leave rental housing providers with less protection against damage and default.”
Legislation is in place in Cincinnati and Minneapolis.
And, “since COVID-19, renters’ choice policies have seen renewed fervor. Gov. Andrew Cuomo of New York and Gov. Phil Murphy of New Jersey have issued executive orders providing renters security deposit flexibility during the pandemic. Similar legislation was introduced in Pennsylvania recently via House Bill 2427.”
“Security deposits and other upfront costs have long been seen as barriers to prospective renters’ housing choice and access,” NAA writes. “Thus, it is no surprise that supporters have been advocating for changes to security deposit laws through the lens of “renters’ choice” legislation, NAA reports.”
Roost is a free online community for renters. It provides proper resources for understanding the lease, security deposit refunds, negotiating lower bills, getting the best renters insurance, and finding ideal roommates will boost their confidence and improve their rental experience.
NAA writes that “security deposit insurance has been framed as a housing affordability solution that streamlines costs for renters and requirements for operators. While many in the industry agree there may be benefits to new approaches, it remains critical that lawmakers balance the interests of all stakeholders and consider some of the potential unintended consequences.
“For renters, they are charged a monthly insurance premium which could exceed the cost of a traditional security deposit if the renter remains in the unit for more than one year, and unlike traditional deposits, insurance fees are nonrefundable. Renters may also be unaware that they remain liable for repairs or damages that exceed the policy’s coverage and could be taken to collections for unpaid balances, which could have lasting effects on their credit.”
About Roost. Roost is free to join and adds a reward of $150 for much-needed items and the chance to boost their rental history can turn these challenging life lessons into pleasant ones. It launched its web-based service and is giving apartment operators a free option to their residents.
Renters can visit joinroost.com to sign up for free and gain access to expert advice, handy planning tools, and data-driven recommendations to help make renting simple and rewarding.
For information on security deposit laws and policies, contact Alex Rossello, NAA’s Manager of Public Policy.