RENTAL PRICING PRACTICES THAT ARE NEITHER CLEAR NOR TRANSPARENT UNDERMINE COMPETITION AND HARM CONSUMERS.”
Chris Mufarrige, director of the FTC's Bureau of Consumer Protection, speaking at the NAD annual conference in Washington, DC on Sept. 17, 2025. (Photo: Brian O'Doherty)
WHAT IS A “JUNK FEE,” ANYWAY? “Junk fee” is more of a consumer-friendly term than a precise legal category. It generally refers to charges that are mandatory, unexpected or insufficiently disclosed. For landlords, that can include mandatory amenity fees, technology or smart-home charges, trash fees, pest-control fees, utility administration charges and other recurring costs. The Federal Trade Commission is now looking closely at the issue. In March 2026, the FTC announced an Advance Notice of Proposed Rulemaking seeking public comment on potential nationwide rules addressing unfair or deceptive fee practices in rental housing. The agency is looking at everything from advertised rent and mandatory fees to application fees and billing practices.
There is not yet a federal rental junk-fee rule. But there is already enforcement activity. In March, the FTC announced that it was sending more than $47.2 million to consumers who paid Invitation Homes for undisclosed fees. The agency had alleged that the company advertised one lease price and then charged renters additional fees, including charges related to smart-home technology and utility management. The refunds also cover unfair move out charges for normal wear and tear, renovations, and preexisting damage. As Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, put it, “Rental pricing practices that are neither clear nor transparent undermine competition and harm consumers.”
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