S. 2148: End Junk Fees for Renters Act

This bill, known as the End Junk Fees for Renters Act, aims to eliminate certain fees that landlords can charge renters. Below are the key components of the bill:

Prohibitions on Fees

• Application Fees: Landlords would not be allowed to charge any fees for people applying to rent a property.
• Tenant Screening Fees: The bill prohibits landlords from charging fees for background checks or tenant screenings of potential renters.
• Late Fees: If late fees are imposed due to missed rent payments, they must be less than 3% of the monthly rent and can only be charged if 15 days have passed since the rent was due. Landlords must clearly disclose late fee policies in rental agreements.

Disclosure of Fees

• Landlords must inform prospective tenants of the total monthly payment, which includes any fees.
• A summary of any legal disputes with former or current tenants must be disclosed.
• Information on ongoing maintenance issues or pest problems has to be made available.
• Tenants should be informed about any rent increases for the last ten years.

Regulatory Oversight

The bill designates various federal officials as "appropriate regulators" responsible for overseeing compliance with these provisions, particularly concerning properties connected to federally supported mortgages. These include:

• The Secretary of Housing and Urban Development (HUD)
• The Secretary of Veterans Affairs
• The Secretary of Agriculture
• The Director of the Federal Housing Finance Agency

Rulemaking Authority

Within 180 days of the bill's enactment, the Bureau of Consumer Financial Protection and the Federal Trade Commission are required to define "junk fees" specific to rental housing. They will also determine if reporting unpaid "junk fees" to credit agencies is an unfair practice.

Covered Dwelling Units

The bill applies specifically to “covered dwelling units,” which include primarily rental properties that receive federal backing, such as those related to HUD or other federal agencies.

Owners Defined

The term "owner" includes any person or entity that has the legal right to lease or sublease a dwelling unit. This encompasses private landlords, cooperatives, and government housing agencies.

Relevant Companies

None found.