In creation of leases, statute of frauds and mortgaging of leaseholds, providing for rental applications.
Impact
If enacted, HB 558 would significantly alter the cost structure associated with applying for residential rentals, making it more accessible for potential tenants. By capping the application fee at $20, the bill is expected to ease the financial burden on renters, particularly those from low-income backgrounds. Additionally, it promotes transparency by ensuring that the application fee serves a defined purpose and prevents excessive charges that could deter individuals from seeking housing. The limitation on the application fee is part of a broader effort to enhance tenant rights and promote equitable housing practices.
Summary
House Bill 558 aims to amend the existing laws governing the relationship between landlords and tenants in Pennsylvania, specifically concerning rental applications. The bill mandates that landlords cannot charge more than a $20 fee for rental applications to enter into a rental agreement for a residential dwelling unit. This fee can only be used to conduct a necessary background check on applicants, which includes an investigation into their criminal history and credit score. It is clearly stipulated that fees charged should relate directly to administrative expenses, thereby preventing landlords from using these fees as a revenue source.
Contention
Discussions around HB 558 include concerns from both landlords and tenant advocacy groups. Proponents of the bill argue that limiting rental application fees addresses disparities in housing access and can help prevent exploitation of potential tenants through high fees. Conversely, some landlords have expressed worry that such restrictions could hamper their ability to screen prospective tenants effectively. There are also concerns that the implementation of a standardized fee might lead to unintended consequences in the rental market, potentially impacting landlords' ability to manage their properties efficiently.
In preliminary provisions, further providing for definitions; and, in creation of leases, statute of frauds and mortgaging of leaseholds, providing for website and disclosure of flood risks.
In tenement buildings and multiple dwelling premises, further providing for definitions and providing for borrowing requirements, for abandonment of residential rental property and for maintenance by receiver; and imposing penalties.