Rental Fees Scrutiny Rises Under FTC Action

Rental fee scrutiny rises as Federal Trade Commission targets hidden costs, pushing mixed-use landlords toward stricter compliance.
Rental fee scrutiny rises as Federal Trade Commission targets hidden costs, pushing mixed-use landlords toward stricter compliance.
  • FTC initiates rulemaking to address hidden rental fees and deceptive pricing.
  • Public comments on proposed rental fees rule are due by April 13, 2026.
  • Case against Greystar led to $24M settlement and disclosure mandates.
  • Industry groups advocate for operational flexibility in fee policies.
Key Takeaways

New Regulatory Pressure for Multifamily and Mixed-Use Owners

The Federal Trade Commission (FTC) is seeking public input and considering new regulations aimed at curbing hidden rental fees, according to Globe St. This action signals increased scrutiny for owners and operators of multifamily and mixed-use properties over how rental costs are disclosed. Shifting compliance standards may require landlords to be more transparent about all mandatory charges.

Rulemaking Follows Broader Crackdown on ‘Junk Fees’

The FTC’s latest move extends earlier efforts from the Biden administration, which focused on prohibiting misleading fees in rental housing. In 2024, the FTC banned hidden pricing for short-term lodging but did not cover traditional rentals, leaving a gap now targeted by the new rulemaking process. The push follows notable legal actions, including a $24M settlement with Greystar in 2025 over undisclosed mandatory charges.

Industry Response and Market Implications

Industry advocates like the National Apartment Association argue that housing providers already outline expected rental fees and require flexibility to manage varied operational needs. At the same time, growing regulatory attention at both federal and state levels suggests landlords are facing a more coordinated push toward fee transparency and tighter oversight across rental markets. However, with operating costs such as taxes and insurance rising, transparency requirements could increase administrative pressures for owners of multifamily and mixed-use properties.

What’s Next for Rental Fees Compliance

Comments from the public and industry stakeholders are due by April 13, 2026, as the FTC continues to examine rental fees practices. Multifamily and mixed-use owners should prepare for potential mandates requiring full disclosure of all mandatory rental charges to prospective tenants during the leasing process.

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