Government & Housing Legalities

NAA RAISING CONCERNS ABOUT BIDEN ADMINISTRATION’S “JUNK FEES” INITIATIVE

By Pat Crowley, Vice President of Governmental Affairs

The National Apartment Association (NAA) has raised concerns about the Biden Administration’s initiative to go after so-called “junk fees” in apartment leases.

On Wednesday, July 19, the administration announced that Zillow, Apartments. com and Affordablehousing.com are taking steps to increase transparency in rents and fees. Following are excerpts of the president’s remarks:

• Zillow is today launching a Cost of Renting Summary on its active apartment listings, empowering the 28 million unique monthly users on its rental platform with clear information on the cost of renting. This new tool will enable renters to easily find out the total cost of renting an apartment from the outset, including all monthly costs and one-time costs, like security deposits and application fees.

• Apartments.com is announcing that this year it will launch a new calculator on its platform that will help renters determine the all-in price of a desired unit. This will include all up-front costs as well as recurring monthly rents and fees. The Apartments.com Network currently lists almost 1.5 million active availabilities across more than 385,000 properties.

• AffordableHousing.com, the nation’s largest online platform dedicated solely to affordable housing, will require owners to disclose all refundable and non-refundable fees and charges upfront in their listings. It will launch a new “Trusted Owner” badge that protects renters from being charged junk fees by identifying owners who have a history of adhering to best practices, including commitment to reasonable fee limits, no junk fees, and full fee disclosure.

The NAA issued a statement following the announcement that the organization “strongly supports transparency in the leasing process ... (and) the lease is a legally binding contract that should be referenced for all housing costs.”

“Rental housing is a narrow-margin industry that exists to serve our renters and communities. Amenities and services come at a cost, which is communicated with residents in the lease and the leasing process,” the NAA said. “Though the industry supports increased transparency and has always called for dialogue between housing providers and their residents, policymakers must recognize operational realities and the role that fees play in housing viability.”

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