Official Text and Analysis.

Modifies the Residential Landlord-Tenant Act so that landlords may offer tenants the choice of paying an entirely or partially nonrefundable fee in lieu of a security deposit.

(1) Requires the landlord who accepts fees from a tenant in lieu of the security deposit to disclose to the tenant in writing the terms of any insurance coverage purchased by the landlord for unpaid rent and unit damage paid for by the fee and that payment of the fee does not preclude the insurer or the landlord from proceeding against the tenant to recover for damage to the property. (2) Provides that the penalty for a landlord who violates the requirements of offering a fee in lieu of a security deposit is two times the monthly rent of the property, and any court costs and attorneys' fees.