Bill Summary: SB 171 - Advance Rental Payments

• Redefines "security deposit" to exclude first month's rent and deposits for keys or special equipment, clarifying what constitutes a security deposit under law.

• Limits security deposits to two months' rent for tenants under 62 years old and one month's rent for tenants 62 and older, with provisions for refunds of excess deposits to senior tenants.

• Requires landlords to deposit security deposits in federally insured financial institutions within escrow accounts and to provide tenants written notice within 30 days of the deposit location, account type, and amount.

• Allows tenants to require landlords to apply security deposits to rent if the landlord fails to properly deposit funds or provide required information; if not corrected within 15 days, tenants are relieved of obligation to provide additional security deposits.

• Establishes liability of twice the security deposit amount for landlords who fail to return deposits, with separate penalties for violations of interest payment requirements on security deposits.

• Effective July 1, 2016.