Bill would require return of pre-lease security deposits and ban nondisclosure lease clauses
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Summary
LB1007 would require landlords to return prepaid rent and security deposits if a tenant declines to sign a rental agreement, and would bar lease clauses that prohibit public discussion of lease terms; supporters said the measures protect vulnerable renters, opponents urged caps and timelines.
Senator George Dungan introduced LB1007 to prohibit landlords from keeping prepaid rent or security deposits when a rental agreement is not signed, and to ban nondisclosure provisions in leases that would penalize tenants for publishing lease terms in public records or testimony. Dungan described constituent reports of leases with onerous terms and cited an example where a large management company included a clause forbidding public filing or discussion of lease provisions.
Supporters including homeless-service providers and tenant advocates said the bill protects people (including survivors, veterans and low-income households) who pay deposits while awaiting vouchers or lease terms and then are unable to proceed. They called nondisclosure clauses a barrier to accountability.
Opponents, including apartment associations and property managers, said the bill could upend common holding-deposit practices used to remove units from the market while applications are processed. They proposed compromise language that would limit nonrefundable holding deposits, set a clear time period for tenants to decide, or require disclosure and caps so landlords can recoup verifiable costs of holding a unit.
Senator Dungan and opponents signaled willingness to negotiate on timelines, caps and disclosure to protect both tenants and small landlords. No committee vote occurred.