AB121 introduces major changes to rent payments, fees, and lease structures. Here’s what you need to know to stay compliant.
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Being a landlord in Nevada is about to get more complicated. AB121 goes into effect on October 1, and it’s one of the most confusing and poorly written pieces of rental legislation in years. Attorneys, property managers, and landlords are still trying to understand how to apply it, but here’s what we know so far.
The "Fee-Free" rent payment dilemma. The core of AB 121 requires landlords to provide tenants with at least one method of paying rent that doesn’t involve a fee or require them to share financial account information. This sounds simple, but in practice, it’s nearly impossible. Online portals charge processing fees. Checks require bank account details. Even money orders incur a cost to the tenant at a third-party retailer. The only truly effective method is cash, which poses significant safety risks for staff and is increasingly difficult to deposit due to the shift to virtual banking.
Lump-sum lease requirements. Another provision requires that all periodic charges (such as rent and utilities) be listed as a single, lump-sum amount in the lease agreement. While this can reduce tenant confusion, it creates a new challenge with owners who expect to see a breakdown. This is especially problematic for multifamily properties that bill back utilities each month; the law appears to prohibit this practice, leaving them struggling to avoid absorbing those costs themselves.
New rules for Application Fees. AB 121 also tightens regulations on application fees. While landlords can still charge a reasonable fee, they must now return it if they accept the applicant but never actually process their application. This targets bad actors who collect fees without conducting thorough tenant screenings. For ethical managers, this is standard practice, but it’s now a legal requirement for all.
“From cash handling risks to utility billing confusion, AB121 creates both safety concerns and financial uncertainty."
Why landlords are concerned. This bill forces landlords and managers into gray areas of compliance. From cash handling risks to utility billing confusion, AB121 creates both safety concerns and financial uncertainty. The full impact will only be seen once the courts begin interpreting the law.
How to prepare for AB 121. The true interpretation of AB 121 will likely be decided in the courts. For now, the key is to be proactive. Update your lease agreements to outline payment options and clearly state that third-party online processing fees are subject to change. Communicate openly with your owners about the new lump-sum lease format. Ultimately, staying informed and adaptable is your best defense in an ever-changing regulatory landscape.
To discuss how to implement these changes for your properties, contact me directly at
725-220-4747 or send an email to info@griplv.com. Don't let confusing legislation put your investments at risk.