Rental Housing Platforms, Several States Join Biden Administration Efforts to Tackle Rental Housing ‘Junk Fees’
Several of the largest rental housing platforms and state governments have taken steps to rein in excessive, surprise fees being charged to tenants, after the Biden Administration and the U.S. Department of Housing and Urban Development in March issues demands for more transparency.
Several of the largest rental industry platforms have joined the fight against excessive fees on renters by providing more transparency, according to releases from the Biden Administration and the U.S. Department of Housing and Urban Development (HUD)
Zillow, Apartments.com, and AffordableHousing.com all issued commitments to provide consumers with full upfront cost information on rental properties, according to statements issued this week.
HUD also today released new research and a plan to limit what it calls excessive fees on renters, and it noted legislative action by state governments across the country to crack down on rental housing fees.
Earlier this year, Biden called for the elimination of hidden “junk fees,” charges, or add-ons assessed to renter households, which he said hit the most vulnerable Americans the hardest. And in March, HUD Secretary Marcia L. Fudge issued a statement demanding the rental housing industry take action on the issue.
Today, Fudge in a news release, added, “Too often, renters are hit with unexpected fees on top of their rent,” Fudge said in a news release this week. “Today’s announcement shows the Biden-Harris Administration’s commitment to lower costs for renters and build a fairer, more transparent rental housing marketplace.”
THE ISSUE
Some rental agencies and owners charge rental application fees up to $100 per application, often exceeding the actual cost of conducting the background and credit checks. The costs start to add up given that most applicants must apply for multiple units before they are approved.
The fees are often hidden, according to administration claims. Studies show consumers pay upward of 20 percent extra when the actual price of the product or service is not disclosed upfront, while transparent upfront pricing creates competition among providers and can reduce costs.
THE SPECIFICS
Zillow, Apartments.com, and AffordableHousing.com announced this week that they will provide new tools to help renters determine an all-in price of a desired unit and comparison shop more easily, according to the news release.
Zillow is launching a Cost of Renting Summary on its active apartment listings; Apartments.com announced said it will launch this year a new calculator on its platform to help renters determine the all-in price of a desired unit. And AffordableHousing.com, the nation’s largest online platform dedicated solely to affordable housing, will require owners to disclose all refundable and non-refundable fees and charges upfront in their listings.
HUD’s Office of Policy Development and Research released a new brief highlighting state, local, and private-sector efforts to rein in excessive application fees and limit allowable fees and deposits at the time of move-in or lease signing.
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