Tenancy: fee in lieu of a security deposit.

Existing law generally regulates security for a rental agreement for residential property that is used as the dwelling of the tenant. Existing law defines "security" for that purpose to mean a payment, fee, deposit, or charge that is imposed at the beginning of the tenancy to be used to reimburse the landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used or to be used for any purpose, as specified. This bill, among other things, would require a landlord who offers a tenant or prospective tenant the option of paying a fee in lieu of a security deposit to take certain action, including offer the tenant or prospective tenant the option to instead pay a security deposit. The bill would authorize a tenant who accepts an offer to pay a fee in lieu of a security deposit to terminate the agreement to pay the fee in lieu of a security deposit at any time and to stop paying the fee if the tenant chooses to instead make a security deposit in the amount that the landlord offers to new tenants for substantially similar housing on the date the tenant chooses to make a security deposit instead of paying a fee in lieu of a security deposit. The bill would prohibit a landlord who collects a fee in lieu of a security deposit pursuant to the bill from submitting a claim for damages or rental debt, as defined, to a third party unless the landlord has given notice to the tenant of the claim for damages or rental debt no later than 30 days after the date the tenant surrendered possession of the dwelling. The bill would provide that a fee in lieu of a security deposit offered pursuant to the bill is not "security," as defined in the provisions discussed above.