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Apartment hunters will know in advance whether a prospective landlord will impose a monthly technology fee, charge them for having guests or even slap on an extra charge just because it’s January, under a new transparency pledge by three major rental housing sites.
Zillow, Apartments.com and AffordableHousing.com have promised to publish information up front showing the total tab for renting a property, according to a White House announcement on Wednesday.
“These fees are often more than the actual cost of providing the service, or are added onto rents to cover services that renters assume are included—or that they don’t even want,” the White House said in the statement.
The announcement comes as the Biden Administration continues to target so-called junk fees on a wide range of products and services, including airline tickets and hotel accommodations.
Report: Apartment Fees Gone Wild
Earlier this year a report by the National Consumer Law Center (NCLC) found renters face “a dizzying array of unavoidable fees” that jack up the cost of housing. The fees can result in rental debt that can ding tenants’ credit reports and jeopardize their access to housing in the future. In some cases, the report said, those fees are a way for landlords to get around legal limits on rent increases.
The report cited a long list of typical rental add-ons, including application fees, convenience fees, insurance fees and charges in lieu of a security deposit. The NCLC says a survey of tenant advocates also uncovered a long list of other required fees for such things as mail-sorting, maintenance, trash collection and amenities.
The center said some properties were even charging a “January fee” at the beginning of each year, “for seemingly no reason.”
One advocate said some landlords in South Carolina were advertising rents for $1,100 a month, but once various fees were tacked on, the actual price could rise to $1,800.
Apartment Rental Sites Promise Fee Transparency
The three rental housing platforms mentioned in the White House announcement say they’re making tweaks to their listings to ensure that prospective renters know the true cost before they pick a place to live.
- Zillow is introducing a Cost of Renting Summary, which will be preloaded “with information about monthly costs, such as rent, parking fees and pet fees, as well as one-time expenses like security deposits, application fees and administration fees,” the company said in a news release. For a flat fee, apartment hunters can use a single form to apply to multiple properties at the same time.
- Apartments.com is launching a calculator for would-be tenants to determine the all-in price of a desired unit.
- AffordableHousing.com will require owners to disclose all refundable and non-refundable fees in their listings; the site will also bestow a “Trusted Owner” badge on landlords with a record of full disclosure and proper fees.
How To Protect Yourself
The new policies will arm prospective tenants with more cost information as they’re looking through listings and deciding where to rent. But there are additional steps you should take both before and after signing on the dotted line:
- Review your lease carefully for terms and conditions. That includes your landlord’s policy for notification if you don’t plan to renew your lease, penalties for breaking your lease and any limits on future rent increases. If your rental agent makes any verbal promises, be sure to get those details in writing.
- Get renters insurance. Your lease may require it, but even if it doesn’t, good renters insurance is a necessity to protect your belongings in case they’re damaged or stolen from your home. The average renters policy costs $15 to $30 a month, according to the National Association of Insurance Commissioners, although the price will vary by amount of coverage and geographic area.
- Do a careful walkthrough before moving in. Check your new apartment for scratches and dents before you move in. Look under sinks and in other out-of-the-way places for signs of wear and tear or any damage that isn’t immediately apparent. If you find anything, the National Association of Realtors suggests taking photos right away to present to your landlord, so you can defend yourself from being charged later for something that wasn’t your fault.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.