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Subcommittee rejects bill that would require landlords to accept multiple payment methods and bar fees for all but one option
Summary
Members debated House Bill 2218, which would require landlords to accept several lawful payment methods and ensure at least one fee-free option; after amendments and extended discussion, the panel voted 4-3 and the measure did not report out of committee.
The General Laws Housing Consumer Protection Subcommittee considered House Bill 2218, a proposal to require landlords to accept multiple lawful forms of rent payment and to ensure at least one method of payment carried no fee.
Delegate Doug Tran, the bill’s sponsor, said the measure ‘‘alleviate[s] the burden of rental payment fees’’ and would require landlords to accept checks, electronic funds transfer, debit/credit cards, cash and money orders and to provide a fee-free option. ‘‘Nobody should be required to pay a fee in order to pay their rent,’’ Tran said in introducing the measure and a line amendment designed to narrow the bill to require at least one free method of payment.
Supporters told the committee the change would help people who rely on cash or who face high fees for third-party payment systems. Opponents, including representatives of the real-estate and apartment sectors, warned the bill could impose operational burdens on small landlords and expose landlords to litigation if screening companies and credit reports reveal eviction records or other information.
Aaron Korman of the Virginia Realtors and other industry witnesses argued the bill’s language — which requires acceptance of multiple payment methods and at least one fee-free option — might force small landlords to offer payment channels they do not currently maintain and could shift implementation costs onto property owners. Korman also cited difficulties with third-party screening and the practicalities of enforcing a prohibition on charging for payment methods.
The subcommittee adopted a line amendment clarifying that the landlord must offer an alternative method of payment that does not include additional fees, but after further discussion the vote to report the measure failed in committee by a recorded vote of 4 to 3 (clerk recorded result "no reports, 4 to 3"). Members opposed to reporting cited operational burdens on small landlords and the potential for unintended consequences; supporters emphasized protections for cash-preferent and low-income renters.
The bill did not report from the subcommittee and will not move forward in its current form unless refiled or reconsidered.
