The Federal Trade Commission is taking a harder line on hidden rental housing fees, signaling a regulatory shift that could reshape how landlords advertise rents and disclose costs. The agency last month launched a rulemaking process to address what it calls "unfair or deceptive acts or practices" related to advertised rent and other charges, setting an April 13, 2026, deadline for public comment.
The agency's notice stated that it is "soliciting such public comment to determine the need for a rule to prevent persons, entities and organizations from engaging in unfair or deceptive practices such as advertising rent that fails to include all mandatory fees or charges, imposing fees and charges without express informed consent and misleading consumers about the nature and purpose of these costs.
This move marks the latest stage in a long-running effort to rein in so-called "junk fees" in housing. The Biden administration had first expanded its crackdown to include rental housing, noting that "from repeated rental application fees to surprise 'convenience fees,' millions of families incur burdensome costs in the rental application process and throughout the duration of their lease," according to a White House post at the time.
When the FTC finalized a rule in 2024 banning hidden pricing in short-term lodging, however, the measure stopped short of covering rental housing. The current administration has reversed many Biden-era initiatives, but scrutiny of deceptive fees has persisted.
A case that began before President Trump took office underscored the issue's staying power. In January 2025, the FTC filed suit against Greystar, alleging the company advertised rents that excluded mandatory charges. The case was settled last December, resulting in a $24 million penalty — $23 million of which will be refunded to consumers and a mandate that the company "stop deceptive advertising practices."
Greystar also agreed not to misrepresent total monthly leasing prices, to "prominently disclose" full monthly costs, and to specify "clearly and conspicuously" which fees are mandatory.
At the time, the FTC used the outcome as a "teaching moment," stating that "nothing good" happens when rental prices don't reflect what tenants actually pay.
For multifamily owners and operators, the debate comes amid broader industry pressures. Amid a surge in new supply, rent growth has slowed, though early signs of recovery suggest stabilization is underway. Meanwhile, taxes, utilities, insurance and maintenance costs continue to rise, tightening margins across the sector.
Industry advocates say flexibility is essential for housing providers dealing with these challenges.
"Providers communicate expected rent, fees and other charges to applicants and residents throughout the leasing process and detail these costs in lease documents for renters to reference at any time," stated the National Apartment Association.
"Flexibility is required for housing providers to develop their own policies and practices that best suit their own business structure and the unique needs of the residents they serve."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.