LB 1038 Security Deposit Changes | Nebraska Landlord Law - YouTube

Channel: Nebraska Landlord

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hi everyone if we're meeting for the
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first time my name is paul vachesky and
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welcome to the nebraska landlord youtube
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channel and facebook if that's where
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you're watching this video hey before we
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get started do me a favor if you're on
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facebook go ahead and like this video
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and like my page if you are on if you're
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on youtube do me a favor give this video
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a thumbs up hit that subscribe button
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click on the notification bell
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all right so
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uh the the nebraska legislature is very
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busy right now dealing with numerous
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landlord-tenant
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act changes or landlord-tenant-related
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type legislation there is one in
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particular that i wanted to bring to
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your attention is lb 1038 it was
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introduced by senator matt hansen he is
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a democrat and i believe he's from the
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lincoln area i think that's where his
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district is located don't quote me on
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that but i'm pretty sure that's where it
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is this particular legislative bill does
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three things it changes nebraska revised
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statute
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76 1410 the definitions section of the
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landlord tenant act and
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and nebraska revised statute 76 14 15.
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now what it does is it number one
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defines or codifies
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what
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wear and tear is
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number two is it puts it puts
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prohibition on predetermined charges
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that can be levity against a tenant
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security deposit and number three is it
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provides punitive damages if you violate
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uh the changes in this law so let's look
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at each one individually so you have a
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better understanding
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number one it changes 76 1410 which is
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the definitions portion of the the
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nebraska landlord tenant law to include
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the definition of wear and tear
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now
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in nebraska if this passes we will use
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the ordinary wear and tear standard
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versus the normal
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wear and tear standard which is a
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broader looser more liberal definition
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than the normal wear and tear
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across the united states we we have seen
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states make changes to the definition to
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this standard and it benefits the tenant
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should they go to court and i want to
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read the definition of what nebraska is
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proposing
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it says ordinary wear and tear means
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deterioration that results from the
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intended use of a dwelling unit
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including the breakage or malfunction
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due to the age or
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deteriorated condition the term does not
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include deterioration that results from
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negligence carelessness accident or
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abuse of the dwelling unit or fixtures
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it's equipment or other tangible
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property left behind by the tenant
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now what's important about this
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this definition is
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number one as i said ordinary is
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different than normal at least that's
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what we've seen in other states that
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have gone to this definition number two
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is in those states that use this type of
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of definition it allows the judge to
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take into consideration the age of the
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dwelling when determining whether or not
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a broken eyed a broken item is actually
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broken beyond ordinary wear and tear so
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the tenant could actually raise an
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affirmative defense that says judge even
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though it's broken it shouldn't matter
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because the the age of the dwelling
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matters now the next thing that lb 1038
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does is it makes changes to nebraska
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revised statute 76 14 15.
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and it's the prohibition section so
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what it does is it says no rental
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agreement may require a tenant
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to agree to pay a predetermined amount
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for cleaning or damages
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to the dwelling unit upon termination of
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the rental agreement or agree that such
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amount or any other fees or charges may
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be automatically deducted from the
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security deposit that's important and
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we're going to talk about that in a
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little bit except those specifically
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permitted under the uniform residential
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landlord tenant act
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now it's very common for landlords and
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property managers to have provisions in
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their lease agreement that says uh that
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if the tenant doesn't do certain things
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then we're gonna deduct a certain amount
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from their security deposit for example
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very common
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that there's a provision in there that
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says that the tenant has the
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responsibility to have the carpets
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professionally cleaned provide an
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invoice from that carpet company to
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prove that it's been done otherwise the
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the landlord or manager will deduct x
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amount of dollars from the security
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deposit that is very common
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another common practice amongst the
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landlording community is to provide a
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chart of charges for things that aren't
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done
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so the landlord or the manager will list
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very common items that the tenant
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fails to clean
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such as cleaning the stove the
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refrigerator changing burned out light
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bulbs and then the landlord manager will
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include a minimum charge that is stated
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in the lease agreement we call it a
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chart of charges that would no longer be
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legal if 1038 passes
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the other interesting thing that this
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does is
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it prevents any other charges
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predetermined charges in the lease
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agreement uh it prohibits the landlord
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from deducting those charges from the
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the security deposit as well so for
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example
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another common thing that uh i see in
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lease agreements is a reinstatement of
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the lease fee so let's say that um
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let's say that there's a seven day
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notice that's produced because the
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tenant doesn't pay the the rent and
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there is
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the the
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the lease agreement has been terminated
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it's starting towards the eviction
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process and then for whatever reason the
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landlord and the tenant decide to agree
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to reinstate the lease
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many times landlords will have a
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predetermined charge
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called a reinstatement fee there are
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other fees for example
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late fees we have
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bounced check fees
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amongst other types of fees that is very
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common right now that we deduct from the
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security deposit if they aren't paid
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when tenancy ends under this provision
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under this bill if it's passed you will
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not be able to
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deduct those charges from your security
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deposit that's what it means and then
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last but not least is punitive damages
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senator hansen has included that if you
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put those provisions in the lease then
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the tenant can sue you and the tenant is
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entitled to an amount equal to one
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month's rent
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in punitive damages plus attorneys fees
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reasonable attorneys fees that's called
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a punitive
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punitive damages
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that is now available to the tenant
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should they pursue any kind of legal
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action
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now i'm going to put a link to lb 1038
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down in the video description so you can
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you can download and read this bill for
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yourself i'm also going to put a link
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to the state senators so that way there
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if you wish to opine you wish to contact
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your state senator and opine on this
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bill or any other bill you can easily do
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that and before you leave please do me a
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favor please give this video a thumbs up
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hit that subscribe button click on the
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notification bell
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and i'll see you in the next informative
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video i'm sure thanks everybody