Current law prohibits a written rental agreement from including:
An unreasonable liquidated damages clause that assigns costs to a party based on an eviction notice or eviction action; or a one-way, fee-shifting clause that awards attorney fees and court costs only to one party. A fee-shifting clause in a rental agreement must award attorney fees to the prevailing party.
The bill amends these prohibitions so that:
A written rental agreement must not include any clause that assigns a penalty to a party stemming from an eviction notice or an eviction action that results from a violation of the rental agreement; and if a rental agreement includes a fee-shifting clause, the prevailing party must only be awarded attorney fees if the prevailing party has prevailed and the fee is reasonable.
The bill also prohibits a written rental agreement from including:
A waiver of the right to a jury trial; the ability to pursue, bring, join, litigate, or support certain class or collective claims or actions; the implied covenant of good faith and fair dealing; or the implied covenant of quiet enjoyment; A provision that purports to affix any fee, damages, or penalty for a tenant’s failure to provide notice of nonrenewal of a rental agreement prior to the end of the rental agreement; A provision that characterizes any amount or fee set forth in the rental agreement, with the sole exception of the set monthly payment for occupancy of the premises, as “rent” for which all remedies to collect rent, including eviction, are available; or A provision that requires a tenant to pay a fee in excess of the amount the landlord paid for a service for which the landlord is billed by a third party or that purports to recoup costs incurred by the landlord in processing any such services or billing.
The link to the bill is here.