Bill
LB 17
LB 17 bans hidden/excessive landlord fees, requires clear disclosures to tenants, caps certain charges, and enforces penalties under Nebraska consumer protection law.
LB 17 Overview — Nebraska Legislature (2025)
Purpose and intent
- Establishes protections against hidden, predatory, and excessive fees under the Uniform Residential Landlord and Tenant Act.
- Aims to require clear disclosures to prospective and current tenants and provide enforcement mechanisms under state consumer protection laws.
Key provisions and changes
- Fees prohibition and allowed charges (Section 2):
- Prohibits landlords from charging any fee, charge, reimbursement, or remuneration to a tenant or prospective tenant beyond specified permitted items.
- Permitted charges include:
- Rent as specified in the rental agreement.
- Security deposit in compliance with the statute.
- Fees for returned payments (insufficient funds) limited to the landlord’s actual cost.
- Late fees for overdue rent limited to either 5% of the past-due amount or $50, whichever is less.
- An application fee not to exceed the actual cost of obtaining a consumer report on the prospective tenant.
- Application process rules:
- No application fee when no unit is available or will be available in a reasonable time.
- Written receipt required for rental application fees.
- Fees may not be collected or kept until prior applicants are screened and rejected or the unit is rented.
- Uniform treatment: same application fee for all applicants for the same unit or for similarly offered units.
- Fees must not be retained if the unit is not pursued (e.g., no use of the consumer report) or if required notices weren’t provided beforehand.
- Disclosure and notification requirements:
- Landlords must provide prospective tenants with a copy of each consumer report obtained, with an option for electronic or paper copy.
- Must include: name, address, and phone number of each consumer reporting agency; rights to access and dispute the report; and rights to review criminal history information for accuracy.
- Adverse action and denial notices:
- If denial or adverse action occurs, landlords must provide detailed written reasons, including specific basis (e.g., information from consumer report, rental history, criminal or civil records, employment verification).
- Landlords must provide the notice within twenty calendar days of the decision.
- Application fee refunds and handling:
- Unused portions may be returned or destroyed on request; landlords should remit refunds within ten calendar days after processing.
- Optional goods and services:
- Landlords may charge reasonable fees for optional goods or services only with written, informed consent after a disclosure describing the good/service, cost, frequency, and opt-out mechanics. Opt-out must be possible at any time.
- Rent disclosures:
- Landlords must disclose total rent cost in writing before submitting an application, including a description of fee frequencies; all fees must be itemized in the written rental agreement signed by both parties.
- Enforcement and penalties:
- Violations are treated as violations of the Nebraska Consumer Protection Act (Title 59) and may be pursued civilly.
- Civil penalties up to $300 per violation, plus costs and reasonable attorney’s fees.
Affected parties
- Prospective tenants and current tenants seeking rental units.
- Residential landlords operating under the Uniform Residential Landlord and Tenant Act.
- Consumer reporting agencies and credit/background screening services.
- The Attorney General’s office for enforcement under the Consumer Protection Act.
Procedural and timeline aspects
- Introduced: January 9, 2025.
- Committee: Judiciary.
- Hearing date: February 20, 2025.
- Statutory changes amend 76-1401 and related sections; repeals and harmonization language included to align with the Uniform Residential Landlord and Tenant Act.
Notes
- The bill preserves certain costs (e.g., security deposits, late payments, returned-check fees, and actual costs of obtaining a consumer report) while curbing hidden or excessive charges.
- It imposes procedural safeguards and clear disclosure requirements to improve transparency in tenant screening and fees.
Compiled from official sources — confirm details with the bill’s official record.
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