I'm for seeking to have the RPPTL lobbyist actively oppose this. I know we need a subcommittee vote and then we need to run it through legislative but for all the reasons Harry set out this is a BAD policy to get started and the REQUIREMENT that it be offered to tenants is a huge headache. My primary client looked into hiring a company that offered this type of product and we didn't in large part because of this offering- it was complicated and not really good for the tenants in the long run. It also did not really provide adequate protection to the Landlords because COLLECTING against the "security" is not an easy task either- it is much more difficult than holding a security deposit and impressing a lien. As the. session is basically here- if we do want to oppose this is now urgent since there are a lot of hoops we need to jump through to authorize the section lobbyist to lobby. Deborah Deborah Marks, PLLC 18495 S. Dixie Highway Ste 134 Miami, FL 33157 305-372-9400 deborahmarkslaw@gmail.com deborah@deborahmarks.law synergy928@aol.com On Fri, Nov 12, 2021 at 11:05 AM Real Estate Leasing Committee < landtencl@lists.flabarrpptl.org> wrote: > Legislation such as this is being pushed by the security deposit > alternative companies such as Obligo, Rhino, and Assurant. It is already > in place in some cities and counties outside of Florida and in some cases, > it is mandatory that the landlord must allow an alternative. > > > > The public is very confused by these products and it is a mess. Some are > insurance products. Some bonds. Many property managers use the > established companies but many want to charge fees in lieu of deposits on > their own and they are pocketing the money and in some cases, they charge > for example $150 a month in perpetuity, through renewals, instead of a > $1000 security deposit upfront. This results in a LARGE profit to the > property manager, the property owner has no clue it is going on, and most > likely this is an unfair and deceptive trade practice or possibly is > “insurance”. The property managers are in essence creating their own > insurance product for the $1000. If there is $1000 in loss to the owner, > the property manager pays it but pockets the difference collected. > > > > I sent an email about this issue a while back but nobody seemed > interested. Here is a helpful article written by a property manager which > explains how some work: > https://www.peterlohmann.com/blog/security-deposit-alternatives-tenant-screening-innovation > > > > > Unless this is written up correctly, it could really create a situation > where a tenant is taken advantage of all under the guise of helping them > not have to pay a large deposit upfront. > > > > The creation of many guarantees, pet damage protection, eviction > protection, rent loss protection by the property manager is spreading > rapidly due to some loudmouths on social media who have concocted these > money making schemes. I contacted the FLOIR (Florida Office of Insurance > Regulation) and they told me it is insurance and they wanted me to name > names which of course I would not do. The property managers think that is > they do not call something “insurance”, then they are in the clear. I see > some class actions on the way. There are way too many fees that are not > being disclosed until an applicant pays money, gets approved, is bound to > sign a lease, and is ready to sign the lease. That is false advertising, > bait and switch and no different than the Resort Fee cases which made a lot > of lawyers a lot of money. > > > > Harry Heist > > *CDC ORDER HAS BEEN STRUCK DOWN BY THE SUPREME COURT * > > *INFO ON CARES COVERED PROPERTY: * > https://evict.com/?page=cares_act_update > > > > > > > *LAW OFFICES OF HEIST, WEISSE & WOLK P.A.PH: 1 800 253 8428FAX: 1 800 367 > 9038"Serving the Property Management Professional"Website: * > *www.evict.com* <http://www.evict.com/> > * Email: **harry@evict.com* <harry@evict.com> > > > > *From:* landten-bounces@lists.flabarrpptl.org < > landten-bounces@lists.flabarrpptl.org> *On Behalf Of *RPPTL Real Estate > Leasing Committee > *Sent:* Thursday, November 11, 2021 11:00 PM > *To:* RPPTL Landlord Tenant Committee <landten@lists.flabarrpptl.org>; > RPPTL Landlord Tennant Committee <landtencl@lists.flabarrpptl.org> > *Cc:* Trey Goldman <treyg@floridarealtors.org>; Marcia Tabak < > marciat@floridarealtors.org> > *Subject:* Re: [RPPTL Leasing Committee] LL/T Legislation - HB 537 > > > > Dear Leasing Committee: > > > > Trey Goldman from Florida Realtors and the RREIL committee has provided > the information below on HB 537: Fees in Lieu of Security Deposits (filed > 11/8/21). Also note the information on a similar law that was passed in > Texas. > > > > *Bill Summary/Link*: > > > > “Fees in Lieu of Security Deposits; Authorizes landlord to offer tenant > option to pay fee in lieu of security deposit; requires landlord to provide > certain written notice to tenant; requires written agreement signed by > landlord, or landlord's agent, & tenant if tenant decides to pay fee in > lieu of security deposit; requires specified disclosure in written > agreement; provides options for paying fee; specifies that fee is not > security deposit; requires landlord to offer option to pay fee in lieu of > security deposit to all new tenants; provides exception.” > https://www.flsenate.gov/Session/Bill/2022/537 > > > > I know this will certainly be of interest to the committee. We will > monitor this at the committee level but if anyone is of the opinion we need > to do more than that or would like to provide feedback to Trey, please do > voice your comments. > > > > Thank you > > > > - Kristen > > > > Kristen King Jaiven, Esq. > > General Counsel > > The Signature Real Estate Companies > > Ph: 561.705.0140 > > Direct Line: 561-300-6921 > > Email: Kristen@quadcompanies.com > > www.SignatureRealEstateCompanies.com > <http://www.signaturerealestatecompanies.com/> > > > > > [image: Signature Partners] <http://mysignaturenetwork.com/> > > > > > > > > On Thu, Nov 11, 2021 at 8:37 PM Trey Goldman <treyg@floridarealtors.org> > wrote: > > Hi Kristen. > > > > Was nice seeing you at the meetings last week. > > > > Here’s the bill I mentioned - > https://www.flsenate.gov/Session/Bill/2022/537. The Leasing Committee may > totally pass on, and I won’t be offended. Just sharing. > > > > > https://www.ky3.com/prnewswire/2021/10/20/texas-new-security-deposit-law-offers-new-opportunity-apartment-owners-managers-renters/ > > > > LeaseLock > <https://leaselock.com/?utm_source=google&utm_medium=cpc&utm_campaign=EN_NORAM_US_Brand&utm_content=521967960636&utm_term=leaselock&device=c&gclid=CjwKCAiAm7OMBhAQEiwArvGi3NeTuJgLsLijq_BfPblu9hYNfEckjQPuJgDbvGsya7BgDxahCDnDxRoCYP4QAvD_BwE> > > > > The language that passed in Texas is very different than language filed in > Florida - > https://capitol.texas.gov/BillLookup/History.aspx?LegSess=87R&Bill=SB1783 > – but intent is the same. > > > > Let me know if you have any questions. > > > > > *Trey Goldman* > Legislative Counsel | *Florida* > *Realtors®*200 South Monroe Street, Tallahassee, FL 32301 > *talk:* 850.224.1400 x2505 > *direct: *850.521.3277 > > *visit:* *http://www.floridarealtors.org > <http://www.floridarealtors.org/>* > > *Click* link to learn more about: Legal Hotline > <https://www.floridarealtors.org/tools-research/legal-hotline>| Tech > Helpline <https://www.floridarealtors.org/tools-research/tech-helpline> | Form > Simplicity <https://www.formsimplicity.com/floridarealtorsmemberbenefit> > > SunStats > <https://www.floridarealtors.org/tools-research/reports/sunstats-custom-interactive-florida-housing-market-reports> > | News <https://www.floridarealtors.org/news-media/florida-realtors-news> > | Magazine <https://www.floridarealtors.org/magazine> | Advocacy > <https://www.floridarealtors.org/advocacy> | Online Ed > <https://www.floridarealtors.org/education> > > > > *Facebook:* http://floridarealtors.org/facebook > > *Twitter:* http://floridarealtors.org/twitter > > > > The Voice for Real Estate in Florida > > > > > > This email and any files transmitted with it are confidential and intended > solely for the use of the individual or entity to whom they are addressed. > If you have received this email in error please notify the system manager. > Please note that any views or opinions presented in this email are solely > those of the author and do not necessarily represent those of the company. > Finally, the recipient should check this email and any attachments for the > presence of viruses. 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