- Rental fees are increasingly regulated to address high upfront housing costs.
- Caps on application fees and security deposits are now common in several states.
- Laws require greater fee transparency and often allow tenants to spread payments.
- Broker fee bans and interest on deposits are gaining traction in major markets.
Legislation Targets Rental Fees
As housing affordability challenges intensify nationwide, regulators are moving to restrict excessive rental fees that can add thousands to tenants’ move-in expenses. Globe St reports over 30 new pieces of rental fees legislation since 2019 aim to cap costs, enhance transparency, and reduce financial barriers for renters.
Application fees are seeing the most rapid regulatory action. States like Connecticut and Oregon cap fees at $50 and $10 respectively, while Vermont has eliminated them. Others, including Illinois and Colorado, require fees to match the actual cost of application processing. New refund policies, such as those in California and Montana, mandate returning fees to non-selected applicants and processing applications in order received.
Security Deposits and Move-In Expenses
Caps on security deposits, usually limited to one or two months’ rent, are standardizing across the US. Some states have exceptions for pets or renters with assistance. Refund timelines range widely—from 14 to 60 days—and more than a dozen states require landlords to pay interest on deposits. Cities like Shoreline, Washington, allow tenants to spread out total move-in payments over six months, providing added flexibility for renters facing high costs, as landlords increasingly adjust leasing approaches in response to stricter fee disclosure expectations and shifting renter preferences.
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Broker Fees and Transparency
Major metro areas are also seeing restrictions or bans on broker fees paid by tenants. Boston and New York City now prohibit these charges, while New York’s FARE Act requires landlords to disclose all rental fees and bars them from mandating broker use. Massachusetts has enacted similar broker fee limits. These measures are part of a broader trend of increasing transparency regarding rental fees for tenants.
What’s Next
Rental fees regulation is likely to continue expanding as more states and cities seek to address affordability. Legislators and housing advocates are expected to monitor the impact of current reforms, with possible additional guidance on allowable fees and payment structures in the future. The evolving landscape reflects growing recognition of tenants’ need for predictable and reasonable upfront costs in today’s housing market.
