The Federal Trade Commission announced on Mar. 12 that it is seeking public comment on a proposed rulemaking aimed at addressing potentially unfair or deceptive fee practices in the rental housing sector.
The move comes as the FTC looks to gather input from the public, including data and arguments, about fees and charges associated with renting a home. The agency said these practices can impact consumers' ability to make informed decisions and may undermine competition among housing providers.
According to Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, “Rental pricing practices that are neither clear nor transparent undermine competition and harm consumers.” Mufarrige added, “The Trump-Vance FTC is focused on addressing unlawful business conduct that obscures the actual cost of housing and undermines price competition.”
The Advance Notice of Proposed Rulemaking (ANPRM) asks for comments on several topics such as whether rental providers clearly disclose total rent amounts, mandatory fees, application fees, security deposits, billing issues, and any practices that may limit consumer choice. The FTC noted that failing to advertise true total rent can increase search costs for consumers and expose them to financial risks if they take on more rent than they can afford.
In recent years, the FTC has taken enforcement actions against large rental companies. Invitation Homes agreed to pay $48 million after allegations it excluded mandatory monthly fees from advertised rents. Greystar Real Estate Partners was ordered to change its disclosure practices and pay $23 million in consumer redress following similar allegations.
While case-by-case enforcement continues, the FTC said a broader rule could help deter hidden or misleading fees by allowing civil penalties against violators and making it easier to obtain redress for affected renters. Once published in the Federal Register, there will be a 30-day period for electronic or written public comments.
The FTC encourages consumers to learn more about their rights at consumer.ftc.gov or report fraud at ReportFraud.ftc.gov.
