Senate Bill sb2730c1

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    Florida Senate - 2007                  CS for SB's 2730 & 1596

    By the Committee on Regulated Industries; and Senators Joyner
    and Constantine




    580-2332-07

  1                      A bill to be entitled

  2         An act relating to residential tenancies;

  3         amending s. 83.43, F.S.; revising and providing

  4         definitions; amending s. 83.595, F.S.; allowing

  5         a landlord to terminate a rental agreement and

  6         recover liquidated damages or charge the tenant

  7         an early termination fee for breach of the

  8         agreement, or both, under certain

  9         circumstances; requiring the tenant to indicate

10         acceptance of an early termination fee or

11         liquidated-damages provision in the rental

12         agreement in order for the provision to take

13         effect; providing a limit on the combined total

14         of damages and fee; providing liability of the

15         tenant for rent, other charges otherwise due,

16         and rental concessions; providing an effective

17         date.

18  

19  Be It Enacted by the Legislature of the State of Florida:

20  

21         Section 1.  Subsection (7) of section 83.43, Florida

22  Statutes, is amended, and subsection (17) is added to that

23  section, to read:

24         83.43  Definitions.--As used in this part, the

25  following words and terms shall have the following meanings

26  unless some other meaning is plainly indicated:

27         (7)  "Rental agreement" means any written agreement,

28  including amendments or addenda, or oral agreement if for a

29  less duration of less than 1 year, providing for use and

30  occupancy of premises.

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    Florida Senate - 2007                  CS for SB's 2730 & 1596
    580-2332-07




 1         (17)  "Early termination fee" means any charge, fee, or

 2  forfeiture that is provided for in a written rental agreement

 3  and is assessed to a tenant when a tenant vacates a dwelling

 4  unit before the end of the rental agreement. An early

 5  termination fee does not include:

 6         (a)  Unpaid rent through the end of the month in which

 7  the tenant occupied the dwelling unit.

 8         (b)  Charges for damages to the dwelling unit.

 9         Section 2.  Section 83.595, Florida Statutes, is

10  amended to read:

11         83.595  Choice of remedies upon breach or early

12  termination by tenant.--

13         (1)  If the tenant breaches the rental agreement lease

14  for the dwelling unit and the landlord has obtained a writ of

15  possession, or the tenant has surrendered possession of the

16  dwelling unit to the landlord, or the tenant has abandoned the

17  dwelling unit, the landlord may:

18         (1)(a)  Treat the rental agreement lease as terminated

19  and retake possession for his or her own account, thereby

20  terminating any further liability of the tenant; or

21         (2)(b)  Retake possession of the dwelling unit for the

22  account of the tenant, holding the tenant liable for the

23  difference between the rent rental stipulated to be paid under

24  the rental lease agreement and what, in good faith, the

25  landlord is able to recover from a reletting. If the landlord

26  retakes possession, the landlord has a duty to exercise good

27  faith in attempting to relet the premises, and any rent

28  received by the landlord as a result of the reletting shall be

29  deducted from the balance of rent due from the tenant. For

30  purposes of this subsection, the term "good faith in

31  attempting to relet the premises" means that the landlord uses

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    Florida Senate - 2007                  CS for SB's 2730 & 1596
    580-2332-07




 1  at least the same efforts to relet the premises as were used

 2  in the initial rental or at least the same efforts as the

 3  landlord uses in attempting to rent other similar rental units

 4  but does not require the landlord to give a preference in

 5  renting the premises over other vacant dwelling units that the

 6  landlord owns or has the responsibility to rent; or

 7         (3)(c)  Stand by and do nothing, holding the lessee

 8  liable for the rent as it comes due; or.

 9         (4)  If liquidated damages or an early termination fee

10  are provided for in the rental agreement, treat the rental

11  agreement as terminated and recover liquidated damages or

12  charge an early termination fee upon the tenant's giving

13  notice. This remedy is available only if the tenant, at the

14  time the rental agreement was made, indicated acceptance of

15  liquidated damages or an early termination fee by placing his

16  or her signature or initials next to the provision in the

17  agreement. If acceptance is not indicated, only the remedies

18  available in subsection (1), subsection (2), or subsection (3)

19  apply.

20         (a)  The landlord is entitled to both liquidated

21  damages and an early termination fee if the combined total

22  charge does not exceed an amount equal to 2 months' rent.

23         (b)  In addition to liquidated damages or an early

24  termination fee, the landlord may charge the tenant for any

25  unpaid rent and other charges due under the rental agreement

26  through the end of the month in which the landlord retakes

27  possession of the dwelling unit, and any rent concessions that

28  the tenant has received up to the maximum of 1 month's rent.

29  For purposes of this paragraph, the term "rent concessions"

30  means any amount contained in the rental agreement by which

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    Florida Senate - 2007                  CS for SB's 2730 & 1596
    580-2332-07




 1  all or a portion of the base rent is reduced in consideration

 2  for the tenant's entering into the rental agreement.

 3         (c)  This subsection does not apply if the breach is

 4  failure to give notice as provided in s. 83.575.

 5         (2)  If the landlord retakes possession of the dwelling

 6  unit for the account of the tenant, the landlord has a duty to

 7  exercise good faith in attempting to relet the premises, and

 8  any rentals received by the landlord as a result of the

 9  reletting shall be deducted from the balance of rent due from

10  the tenant. For purposes of this section, "good faith in

11  attempting to relet the premises" means that the landlord

12  shall use at least the same efforts to relet the premises as

13  were used in the initial rental or at least the same efforts

14  as the landlord uses in attempting to lease other similar

15  rental units but does not require the landlord to give a

16  preference in leasing the premises over other vacant dwelling

17  units that the landlord owns or has the responsibility to

18  rent.

19         Section 3.  This act shall take effect upon becoming a

20  law.

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    Florida Senate - 2007                  CS for SB's 2730 & 1596
    580-2332-07




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                    Senate Bills 2730 and 1596

 3                                 

 4  The committee substitute (CS) combines SB's 2730 and 1596.
    Regarding SB 2730, the CS:
 5  
    -    Amends s. 83.595(2) F.S., to refer to "rents" received
 6       from reletting instead of "rentals" received.  It also
         refers to the landlord attempting to "rent" other similar
 7       rental units instead of attempting to "lease" other
         similar rental units.
 8  
    -    Amends s. 83.595(4)(b), F.S., to clarify that the
 9       landlord may charge the tenant for any unpaid rent "and
         other charges" due under the rental agreement through the
10       end of the month.

11  -    Amends s. 83.595, F.S., to include the term "or" between
         each of the four landlord remedies.
12  
    Regarding SB 1596, the CS:
13  
    -    Amends s. 83.595(2),F.S., to require that the landlord
14       attempt in good faith to relet the dwelling unit and
         clarifies that the amount received from the reletting
15       must be deducted from the amount due from the tenant.  It
         deletes the similar "good faith" provision contained in
16       current law at s. 83.595(2), F.S.

17  -    Requires that the tenant acknowledge the early
         termination fee or liquidated damages in the lease
18       agreement by placing his or her initials or signature
         next to the provision.
19  
    -    Defines "rental concessions" to mean an amount contained
20       in the rental agreement used as consideration for the
         tenant's entering into the rental agreement. The CS does
21       not include within the meaning of the term services or
         things of value given in consideration.
22  
    -    Amends s. 83.595, F.S., to include the term "or" between
23       each of the four landlord remedies.

24  The CS removes the provision in section 3 of the bill relating
    to the retroactive application of this act.
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