Rating: 0

Bill Summary:

Senate Bill 1042 adds Section 55-315 to Idaho Code, placing limits on how and when residential landlords may charge application fees to prospective tenants. The bill restricts landlords or property managers to charging application fees to no more than two applicant households at a time per rental unit. These fees may only be charged if the unit is currently available or expected to become available within 60 days, unless the applicant voluntarily agrees to be placed on a waiting list.

The bill also requires landlords to disclose screening criteria (e.g., credit, criminal, income checks), to charge only adult household members, and to ensure application fees reflect actual processing costs such as background checks. If one of the initial two applicants is denied, the next may be charged. Landlords who do not charge application fees are exempt. The bill includes an emergency clause and takes effect July 1, 2025.

Reason for Rating:

While S1042 aims to increase transparency and reduce exploitative practices in the rental market, it also introduces new regulatory requirements on private property owners. Although it stops short of rent control or mandatory acceptance of tenants, it imposes conditions on the timing, scope, and pricing of application fees. The Idaho Republican Party Platform generally opposes new regulations on business activity and supports private contract freedom, but also values transparency, fairness, and market accountability. Because the bill promotes consumer protections without greatly expanding state power or spending, it is best rated as neutral.