U.S. Portals Help with Whitehouse Crackdown on Rental 'Junk Fees'

Several U.S. rental real estate portals have been named in a White House press release highlighting President Biden's housing reforms.

Prospective American renters can face multiple 'application fees' as well as so-called 'convenience fees' in their quest to secure an apartment. The Biden administration is looking to tackle these burdens which the White House says are "often more than the actual cost of providing the service, or are added onto rents to cover services that renters assume are included".

President Biden will announce new research into the issue as well as legislation to curb junk fees in several states across the nation.

To do their part, real estate portals have been called upon to display any fees that a renter may incur in order to make it easier for them to make an accurate comparison between apartments.

"A prospective renter may choose one apartment over another thinking it is less expensive, only to learn that after fees and other add-ons the actual cost for their chosen apartment is much higher than they expected or can afford."

Three rental portals were named as having stepped up to the plate: Zillow, Apartments.com and AffordableHousing.com.

• 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.