SB436 - Revises provisions relating to landlords and tenants. (BDR 10-514)

REQUIRES TWO-THIRDS MAJORITY VOTE (§ 2) S.B. 436 - *SB436* SENATE BILL NO. 436–COMMITTEE ON COMMERCE AND LABOR (ON BEHALF OF THE JOINT INTERIM STANDING COMMITTEE ON COMMERCE AND LABOR) MARCH 24, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to landlords and tenants. (BDR 10-514) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to landlords; requiring the Housing Division of the Department of Business and Industry to establish a registry of landlords and a mechanism for a tenant to file a complaint concerning a landlord; requiring a landlord of a dwelling unit that does not satisfy certain requirements for essential items or services to provide a tenant certain alternative accommodations under certain circumstances; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law defines the term “landlord” as a person who provides a dwelling 1 unit for occupancy by another pursuant to a rental agreement. (NRS 118A.100) 2 Section 2 of this bill applies to any landlord who: (1) uses a property manager for 3 any number of dwelling units in this State; or (2) owns five or more dwelling units 4 in this State, regardless of whether the landlord uses a property manager for any 5 such dwelling unit. 6 Section 2 requires the Housing Division of the Department of Business and 7 Industry to establish a statewide registry of landlords that consists of the following 8 information for each landlord: (1) the name of the landlord; (2) the state and county 9 in which the landlord is domiciled; (3) the total number of dwelling units owned by 10 the landlord in this State and the address of each dwelling unit; (4) the amount of 11 periodic rent charged by the landlord for each dwelling unit in this State and the 12 frequency with which the periodic rent is charged to the tenant; and (5) certain 13 information relating to the property manager of the premises, if applicable. Section 14 2 requires each landlord who is not a member of an association to report to the 15 Housing Division the information required to be contained in the statewide registry 16 on an annual basis and at certain other times. If the landlord is a member of an 17 – 2 – - *SB436* association, section 2 requires the association, on behalf of the landlord, to report to 18 the Division the information required to be contained in the statewide registry on an 19 annual basis. Section 2 prohibits a property manager from providing services to a 20 landlord who is not listed in the statewide registry. Section 2 additionally requires 21 the Division to: (1) establish a mechanism for a tenant to file a complaint 22 concerning a landlord; and (2) post such complaints on the Internet website of the 23 Division. Finally, section 2: (1) authorizes the Division to establish by regulation 24 an annual registration fee to be imposed on a landlord who registers with the 25 registry; and (2) requires the Division to use the revenue from such fees to defray 26 the administrative costs associated with implementing the registry of landlords and 27 the mechanism for filing and posting complaints concerning landlords. 28 Existing law provides a tenant certain remedies if: (1) a landlord is required by 29 the rental agreement to provide certain essential items or services and the landlord 30 willfully or negligently fails to do so; (2) the tenant gives written notice to the 31 landlord specifying the breach; and (3) the landlord does not adequately remedy the 32 breach or use his or her best efforts to remedy the breach within 48 hours, except a 33 Saturday, Sunday or legal holiday, after the notice is received by the landlord. 34 (NRS 118A.380) Section 3 of this bill additionally authorizes a tenant, at any time 35 after such written notice has been provided and before the landlord has remedied 36 the breach, to submit to the landlord a written request for alternative 37 accommodations. Section 3 requires the landlord to, not later than 24 hours after 38 receipt of the request, provide to the tenant and, with certain exceptions, 39 continuously maintain thereafter until the breach is remedied a comparable 40 dwelling unit or a hotel room, as selected by the landlord, at no cost to the tenant. 41 Section 3 requires the comparable dwelling unit or hotel room to: (1) include 42 certain features, depending upon the amount of time the dwelling unit or hotel room 43 is required; and (2) be located within certain distances of the dwelling unit of the 44 tenant. If a tenant is so relocated, section 3 requires the landlord to pay only certain 45 expenses that arise from the relocation, specifically: (1) under certain 46 circumstances, a per diem allowance in an amount that is at least equal to that 47 provided for state officers and employees; and (2) other reasonable costs incurred 48 due to the relocation, including, without limitation, costs of storage and 49 transportation. Section 3 provides that the provisions of section 3 do not relieve a 50 tenant who is relocated of the obligation to pay rent to his or her landlord. 51 Section 4 of this bill provides that if a tenant is provided a hotel room pursuant 52 to section 3 and, due to circumstances beyond the reasonable control of the 53 landlord, the breach cannot be remedied by a date which is 60 days after the date on 54 which the tenant’s occupancy in the hotel room began, the obligation of the 55 landlord to provide the hotel room terminates on that date. Section 4 requires a 56 landlord who makes a determination that the breach cannot be remedied within that 57 60-day period to provide to the tenant, at the earliest opportunity, written notice: (1) 58 that the breach cannot be remedied within 60 days; (2) of the date on which the 59 hotel room will no longer be provided at the expense of the landlord; and (3) that 60 the tenant may terminate his or her rental agreement with no liability or financial 61 penalty. Section 4 also requires the landlord to return to the tenant the tenant’s full 62 security deposit, if any, on or before the date on which the landlord provides the 63 written notice pursuant to section 4. 64 Section 5 of this bill provides a tenant the same remedies against a landlord 65 who violates section 3 or 4 as those provided under existing law for failure of the 66 landlord to remedy or use his or her best efforts to remedy a breach relating to an 67 essential good or service. 68 – 3 – - *SB436* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 118A of NRS is hereby amended by 1 adding thereto the provisions set forth as sections 2, 3 and 4 of this 2 act. 3 Sec. 2. 1. The Division shall: 4 (a) Establish a statewide registry of landlords that consists of 5 the following information for each landlord: 6 (1) The name of the landlord; 7 (2) The state and county in which the landlord is domiciled; 8 (3) The total number of dwelling units owned by the 9 landlord in this State; 10 (4) The address of each dwelling unit described in 11 subparagraph (3); 12 (5) The amount of the periodic rent charged by the landlord 13 for each dwelling unit described in subparagraph (3) and the 14 frequency with which the periodic rent is charged to the tenant of 15 each dwelling unit; and 16 (6) The name of the property manager of the premises and 17 the name of the real estate broker with whom the property 18 manager is associated, if applicable; 19 (b) Establish a mechanism by which a tenant may file a 20 complaint concerning a landlord; and 21 (c) Post complaints concerning landlords filed by tenants 22 pursuant to paragraph (b) on the Internet website of the Division. 23 2. Except as otherwise provided in subsection 3, each 24 landlord shall report to the Division the information described in 25 paragraph (a) of subsection 1 on or before January 1 of each year 26 and any time there is a change in the information described in 27 paragraph (a) of subsection 1 as that information relates to the 28 landlord. 29 3. If a landlord is a member of an association, the association 30 shall, on behalf of the landlord, report to the Division the 31 information described in paragraph (a) of subsection 1 on or 32 before January 1 of each year. 33 4. A report described in subsection 2 or 3 must be made in the 34 manner prescribed by the Division. 35 5. A property manager may not provide services to a landlord 36 who is not listed in the registry described in paragraph (a) of 37 subsection 1. 38 6. The Division may establish by regulation an annual 39 registration fee which the Division may impose on a landlord who 40 registers with a registry established pursuant to paragraph (a) of 41 subsection 1. If such a fee is imposed, all revenue from fees 42 – 4 – - *SB436* collected pursuant to this subsection must be used by the Division 1 to defray the administrative costs associated with implementing: 2 (a) The registry established pursuant to paragraph (a) of 3 subsection 1; and 4 (b) The mechanism for filing and posting complaints 5 concerning landlords pursuant to paragraphs (b) and (c) of 6 subsection 1. 7 7. This section applies to any landlord who: 8 (a) Uses a property manager for any number of dwelling units 9 in this State; or 10 (b) Owns five or more dwelling units in this State, regardless 11 of whether the landlord uses a property manager for any such 12 dwelling unit. 13 8. As used in this section: 14 (a) “Association” means an organization focused on the rental 15 housing industry in this State which, for valuable consideration, 16 provides membership to landlords, developers, property managers 17 or like actors in the rental housing industry in exchange for the 18 provision of services, information, educational opportunities or 19 like benefits relating to the rental housing industry to members of 20 the organization. 21 (b) “Division” means the Housing Division of the Department 22 of Business and Industry. 23 (c) “Property manager” has the meaning ascribed to it in 24 NRS 645.0195. 25 (d) “Real estate broker” has the meaning ascribed to it in 26 NRS 645.030. 27 Sec. 3. 1. If a tenant gives written notice to a landlord 28 pursuant to NRS 118A.380, the tenant may, at any time before the 29 landlord has remedied the breach, submit a written request to the 30 landlord for alternative accommodations. Not later than 24 hours 31 after receipt of the request, the landlord shall provide to the tenant 32 and, except as otherwise provided in section 4 of this act, 33 continuously maintain for the tenant thereafter until the breach is 34 remedied: 35 (a) A comparable dwelling unit, as selected by the landlord, at 36 no cost to the tenant; or 37 (b) A hotel room, as selected by the landlord, at no cost to the 38 tenant. 39 2. A comparable dwelling unit or hotel room provided 40 pursuant to subsection 1 must include at least the same number of 41 beds as there are beds used in the dwelling unit of the tenant. 42 3. If a tenant requires a comparable dwelling unit or hotel 43 room for more than 48 hours: 44 – 5 – - *SB436* (a) The comparable dwelling unit or hotel room must include a 1 refrigerator with a freezer and a range, stove or oven; or 2 (b) The landlord must provide a per diem allowance for daily 3 meals and incidentals for each tenant in an amount that is at least 4 equal to the per diem allowance provided for state officers and 5 employees generally. The landlord must provide the per diem 6 allowance to the tenant at the time the landlord reasonably expects 7 the tenant to be in a comparable dwelling or hotel room for more 8 than 48 hours and for every 24-hour period thereafter. 9 4. A comparable dwelling unit or hotel room must be: 10 (a) Habitable; 11 (b) Accessible to a person with disabilities if the tenant has a 12 disability; and 13 (c) Located not more than 5 miles from the dwelling unit of the 14 tenant, unless the tenant consents to a comparable dwelling unit 15 or hotel room that is located more than 5 miles from the dwelling 16 unit of the tenant. The landlord may select a comparable dwelling 17 unit or hotel room that is located more than 5 miles but less than 18 10 miles from the dwelling unit of the tenant if the comparable 19 dwelling unit or hotel room that is farther away from the dwelling 20 unit of the tenant is substantially less expensive than other options 21 that are available not more than 5 miles from the dwelling unit of 22 the tenant. If a dwelling unit or hotel room located 5 miles or 10 23 miles, as applicable pursuant to this subsection, from the dwelling 24 unit of the tenant is not available for the use of the tenant in 25 accordance with this subsection, the landlord must select the 26 nearest available comparable dwelling unit or hotel room. 27 5. If a tenant is relocated pursuant to this section, a landlord 28 is required to pay for only the following expenses that arise from 29 relocating the tenant: 30 (a) A per diem allowance pursuant to paragraph (b) of 31 subsection 3, if applicable; and 32 (b) Reasonable costs that are incurred due to the relocation of 33 the tenant, including, without limitation, costs of storage and 34 transportation. 35 6. A tenant who is provided relocation pursuant to this 36 section is not relieved of the obligation to pay rent to the landlord. 37 Sec. 4. 1. If a tenant is provided a hotel room pursuant to 38 section 3 of this act and, due to circumstances beyond the 39 reasonable control of the landlord, the breach cannot be remedied 40 by a date which is 60 days after the date on which the tenant’s 41 occupancy in the hotel room began, the obligation of the landlord 42 to provide the hotel room to the tenant terminates on that date. 43 2. A landlord who determines that, due to circumstances 44 beyond his or her reasonable control, a breach cannot be 45 – 6 – - *SB436* remedied within 60 days after the date on which a tenant’s 1 occupancy in a hotel room began shall: 2 (a) Provide to the tenant, at the earliest opportunity, written 3 notice that specifies: 4 (1) That the breach cannot be remedied by a date which is 5 60 days after the [Text truncated for display. Full text available on LegiScan.]