New Regulations on Fees Charged by Landlords Signed into Law by Gov. Janet Mills

Gov. Janet Mills (D) signed into law this past Wednesday a bill that implements new regulations on the fees that landlords can impose upon their current and potential tenants.

LD 1490 puts in place a number of provisions pertaining to the types of fees landlords may charge current and future tenants, as well as those that may be imposed by the owners of mobile home parks.

It also adds into statute a mandatory 45-day notification requirement for any increase in recurring fees, mirroring that which is currently in place for rent increases.

This law also requires landlords to provide potential tenants with a total price disclosure before signing a lease that includes the cost of rent and any additional fees for which they would be responsible on a recurring basis.

These changes will go into effect on January 1, 2025.

[RELATED: Augusta Democrats Advance Bill Expanding Regulation of Fees Charged by Landlords]

Once this law goes into effect, landlords will be barred from requiring a tenant to pay anything upfront beyond the first month’s worth of rent, a security deposit, and “any mandatory recurring fee.”

According to this new statute, mandatory recurring fees are defined as those that are paid on a “predetermined recurring basis to fulfill requirements within a lease or tenancy at will agreement related to services or common areas.”

This law also explicitly prohibits landlords from requiring tenants to pay “a fee, penalty or other charge” for “discontinuing tenancy” beyond those that are “to recover reasonable expenses related to securing another tenant in circumstances in which the initial tenant has breached provisions of the lease,” to collect unpaid rent, or to cover the cost of damages caused by the tenant.

Landlords must now also give potential tenants a “total price disclosure” outlining all costs that a tenant will “be responsible for paying,” such as the total cost of rent, recurring fees, and utility service costs.

Additionally, the 45-day notification requirement for rent increases has now been expanded to include any increase in mandatory recurring fees for which a tenant is responsible.

There are also elements of this law that apply to mobile home park owners, such as an extension of existing restrictions and notification requirements to these facilities.

It also prohibits mobile home park owners from charging potential tenants an application fee beyond the cost of a background check, credit check, or other screening process.

Click Here to Read the Full Text of LD 1490 As Signed

The original draft of LD 1490 was much shorter than that which was ultimately signed into law, as it only contained language prohibiting landlords from charging prospective tenants an upfront fee beyond the first month’s rent, a security deposit, and the cost to purchase and install a lock and key.

Click Here to Read the Original Draft of LD 1490

Lawmakers in the House voted 74-63 along party lines in favor of accepting the Housing Committee’s Majority Ought to Pass As Amended report, with all present Democrats supporting the measure and all present Republicans voting in opposition.

Nearly the same group of lawmakers also voted in support of the House Amendment which added the provisions concerning mobile home park owners — approving it in a roll call vote of 74-64 — with the exception of Rep. Stephen W. Moriarty (D-Cumberland), who voted against this particular amendment despite supporting the amended bill as a whole.

Similarly, the Senate voted along party lines to support this version of the bill in a roll call vote of 21-13, wherein all Republicans were in opposition and all present Democrats were in support. Sen. Mattie Daughtry (D-Cumberland) was excused from the chamber at the time of the vote.

Gov. Mills signed LD 1490 into law on April 3, 2024, and its changes will take effect on January 1 of next year.