Hundreds of American tenants are pushing federal regulators to crack down on hidden charges that landlords pile on top of rent, arguing the practice has spun out of control as professional property managers now dominate more of the housing market.
The fight is playing out at the Federal Trade Commission, where a new rulemaking process on rental housing fees has attracted sharp disagreement. Of nearly 471 public comments filed, roughly 400 backed tougher regulation or flagged problems with add-on charges. Industry groups, meanwhile, are mounting a coordinated defense of what they call necessary fees to keep properties financially viable.
Farah Momin, a Seattle renter who submitted comments to the FTC in April, described the power imbalance plainly: landlords impose fees through take-it-or-leave-it lease terms, and the cost of moving forces tenants to accept unfair charges rather than relocate. "Federal baseline protections are needed to level this playing field," she told regulators.
The surge in junk fees coincides with the professionalization of rental housing. Property management companies have expanded their share of the market by 47 percent over the past decade. Professional management now dominates complexes with 50 or more units, where it manages more than half of all dwellings.
This regulatory push comes after years of legal battles and regulatory setbacks. In 2022, the FTC considered sweeping junk fees across multiple industries, including rentals. The National Apartment Association coordinated roughly 3,800 comments opposing the move. The FTC buckled, narrowing its focus to event tickets and short-term rentals and leaving rental housing largely untouched.
Recent enforcement actions have shifted momentum. In 2024, Invitation Homes, the nation's largest single-family rental company, settled charges for $48 million over allegations it charged tenants "millions of dollars in junk fees and other bogus amounts." The company denied wrongdoing but agreed to terms. In December, Greystar, the country's largest apartment owner and manager, settled with the FTC and Colorado for $24 million over similar allegations. Greystar also denied wrongdoing.
Those settlements have shaped the FTC's new direction. Under Greystar's agreement, the company must disclose a "total monthly leasing price" that bundles base rent with all mandatory, fixed fees. The FTC then sent warning letters to 13 major property management software firms, including RealPage and Yardi Systems, cautioning that incomplete price advertising could trigger penalties up to $53,088 per violation.
Industry players are fighting back. The National Apartment Association argues that rental housing is already heavily regulated and that fees are essential to keep communities financially stable. Local affiliates submitted template comments warning that "all-in pricing" could artificially inflate housing costs and that rental transactions are too complex for transparent pricing.
But supporters of stronger rules say transparent pricing will level competition and protect tenants. Representative Maxwell Frost, a Florida Democrat, introduced the End Junk Fees for Renters Act in 2023 and again in 2025. The bill would apply to federally backed housing and would ban certain fees, require total rent disclosure, and require landlords to report maintenance and legal histories. A companion Senate bill has no Republican cosponsors.
Only a handful of states have enacted protections. Colorado, Massachusetts, Minnesota and Nevada require landlords to advertise total monthly leasing prices. Another 17 states regulate specific fee types, such as application or late charges, according to a National Consumer Law Center report.
Mandatory utility fees have become a flashpoint in the debate. Many landlords now bill tenants for building-wide and in-unit utilities through third-party billing services that use proprietary formulas rather than individual usage. Greystar frequently uses Conservice, a Utah-based firm that describes itself as the nation's largest utility manager.
Shaun Cordeiro, a Boston Harbor resident and behavioral economist, became entangled in utility fee disputes with Greystar starting in 2022. His water bills, calculated by formula rather than actual usage, seemed inflated. When he raised concerns, management dismissed him. The situation escalated when health issues caused him and his partner to fall behind on rent, triggering what he describes as questionable eviction and legal fees.
Cordeiro filed a federal class action lawsuit in Massachusetts in November 2023, alleging Greystar violated state law by charging eviction fees without a court order. The case remains pending. Greystar has denied wrongdoing and maintains Cordeiro owes more than $5,000 in unpaid rent and fees.
"There are so many things that we just allow to happen," Cordeiro said. Accepting small extra charges seems easier than fighting, but "it is" worth the effort, he stressed. Without pushback, he warned, "these large corporations are just going to continue to operate as they do."
Author James Rodriguez: "The FTC's enforcement momentum matters, but property managers will resist any rule that shrinks their fee revenue, making a tough final regulation far from guaranteed."
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