‘Predatory’ landlords in Boise are charging high fees. Idaho bill could protect renters
Some Idaho landlords are evicting renters who can’t afford fees applied to late rental payments, which can amount to a $500 flat fee or $100 daily rate until rent is paid, said Sen. Ali Rabe, D-Boise.
Rabe, who runs Jesse Tree, a nonprofit that helps people avoid eviction and homelessness, is sponsoring a bill that would require rental fees to be “reasonable” and clearly stated in lease agreements. The regulations would give tenants legal recourse to challenge exorbitant fees in small claims court, Rabe said.
“This is a real problem, one of the biggest issues that I’ve seen tenants facing over the last few years,” Rabe told the Senate on Thursday.
The Senate passed the bill with bipartisan support after property managers lobbied for it. Ten senators declared potential conflicts of interest for owning rental properties, and most voted in favor of the bill.
Spencer Henderson, legislative chair for the southwest Idaho chapter of the National Association of Residential Property Managers, told a Senate committee earlier this month that the bill would curb “predatory” landlords that “hurt our industry.”
“There is currently no path for renters to seek basic consumer protections against predatory actors regarding unreasonable late charges,” Henderson said during a public hearing at a legislative committee.
Bill acknowledges renters’ limited power
The legislation only applies to fees and would not affect rent, nor would the proposed limitations apply retroactively to existing lease agreements.
Those provisions were added as amendments to the bill after it advanced through the Senate Judiciary and Rules Committee.
Ten Senate Republicans opposed the legislation Thursday. Sen. Dan Foreman, R-Moscow, said contracts, attorneys and courts exist to resolve disputes between landlords and tenants.
“If you don’t like what the contract says, negotiate to change it or don’t sign it,” Foreman said. “If you need legal assistance in that endeavor, it’s available.”
The bill would allow landlords to change fees with a 30-day notice provided to the tenant. And it would allow tenants to seek relief from exorbitant fees in a small claims court, where a judge could direct a landlord to refund excessive costs, Rabe said. Twenty-seven other states limit rental fees, she said.
“The reasoning behind why so many states pass laws related to fees is not to tell private parties what to do or how to bargain,” Rabe said. “It’s just a recognition that when tenants sign a lease agreement, they have very little bargaining power.”
Rabe said the word “reasonable” is used in existing Idaho laws and is commonly interpreted by judges, who determine whether fees are reasonable in relation to the costs incurred. Idaho law already requires that agreements for mortgages and storage facilities have “reasonable” fees.
“Homeowners, you’re protected,” said Senate Assistant Majority Leader Abby Lee, R-Fruitland. “If you are renting a place to live for your family, you’re not, but as soon as you’re evicted and you have to move all your stuff into a storage unit, you get the same protections.”
Lee, who supported the bill after declaring a potential conflict as a rental property owner, praised Rabe for crafting a bill that landlords support, a “significant accomplishment.”
The bill now heads to the House.
This story was originally published February 23, 2023 at 2:22 PM.
