The State Legislature has been busy passing laws that directly impact landlords and tenants. I will be sending out emails over the next few weeks reviewing these changes. If you have questions about anything detailed here, please let me know.
SB23-184 Protections for Residential Tenants
- Income requirements are now capped at 200% of the rental rate for any applicant. If a tenant has a subsidy, the subsidy amount is counted towards the 200%. For example, if a rental is priced at $2000, the maximum income we can require is $4000.
- Credit Score Consideration- There are now different requirements based on the applicant. Landlords can no longer consider an applicant's credit score if the applicant has a rent subsidy. All other applicants can continue having a credit score requirement. At this point, the definition of subsidy has not been clearly defined as it includes public or private. Section 8 Housing Vouchers are definitely considered a subsidy. As a reminder, current law states that landlords may not discriminate against tenants with Section 8 vouchers, and they are required to accept them provided the applicant meets the other requirements.
- Security Deposit Maximum- Landlords may now charge no more than two monthly rent payments as a deposit. This includes any pet deposits. Please note there are further changes to pet deposits that will be addressed in later emails.
This law is effective 8/7/2023. HYVE Property Management is working hard to adapt our screening criteria and process to ensure we continue to screen for the best tenants while being fully compliant with all legislation.