by Erik Sherman
Transparency around rental fees has emerged as a flash point in the multifamily industry, with growing scrutiny from regulators and mounting frustration among tenants who want to know what they’re really paying for. At both the state and federal levels, questions of disclosure have become increasingly urgent, highlighting just how complicated the leasing process can be.
The debate over fees isn’t unique to housing. Brent Steiner, founder and chief executive of Engrain, told GlobeSt.com that renters’ frustrations echo those seen in other industries where surprise add-ons became a notorious pain point for consumers. “I think we first saw fee transparency in more high-profile use cases, such as hospitality, travel, fintech, and ticket booking,” he said, noting that public backlash in those industries helped fuel similar calls in real estate.
The federal government has also taken notice. The Biden administration made so-called “rental junk fees” a target, though Steiner pointed out that the regulatory picture is more complicated than directives from the Federal Trade Commission. “The first law that I’m aware of was in Minnesota,” he said. “From there, going into 2024, there was some federal legislation and a lot of state legislation that started to come forth.” Whether those rules hold up, he added, could depend on political shifts in Washington.
Read Erik Sherman’s article in GlobeSt.