Lawmakers Push to Eliminate Hidden Fees, Protect Renters’ Rights With New Federal Legislation

Aiming to bring greater fairness and affordability to the rental housing market, Rep. Maxwell Alejandro Frost (D-FL) and Sen. Jeff Merkley (D-OR) have introduced a new legislative effort the End Junk Fees for Renters Act designed to protect tenants from deceptive charges and improve transparency in the rental process.

Rep. Frost, joined by Rep. Jimmy Gomez (D-CA), Chair of the Congressional Renters Caucus, is leading the House version of the bill. The legislation comes at a time when renters across the country, especially in high-cost states like Florida, are facing mounting challenges due to soaring rents, rising fees, and limited affordable housing options. With many families on the brink of homelessness and cities increasingly criminalizing unhoused individuals, the sponsors say urgent federal action is long overdue.

“This bill is about standing shoulder to shoulder with renters and working families,” said Rep. Frost. “People are getting hit with outrageous fees from landlords and leasing companies fees that often come out of nowhere and make it even harder to secure stable housing. We’re done letting big property owners nickel-and-dime Americans just trying to get by.”

What the End Junk Fees for Renters Act Would Do

The proposed law takes direct aim at exploitative fees by:

• Prohibiting rental application and tenant screening fees altogether, reducing upfront costs for apartment seekers.
• Capping late rent fees at 3% of the monthly rent and mandating a 15-day grace period to ensure renters aren’t penalized harshly for minor delays.
• Requiring landlords to disclose critical rental history including any legal disputes with tenants, pest problems, ongoing maintenance issues, and historical rent increases over the past decade within lease agreements.
• Mandating full disclosure of all monthly charges, preventing surprise add-on fees and helping renters budget more accurately.
• Promoting consumer comparison shopping, thereby enhancing market competition and potentially driving down overall rental prices.

Sen. Merkley emphasized the need for regulation to curb corporate greed: “Too many large landlords are sneaking in hidden costs, padding their profits on the backs of working families. This legislation gives renters the tools they need to fight back and demand a fair, transparent rental process.”

Rental Market Trends Suggest a Window of Opportunity for Tenants

Data from Redfin shows that the median asking rent nationwide dropped slightly by 0.5% year-over-year to $1,642 in June 2025 marking the fourth straight month of annual declines. Though rents are still hovering near historic highs, the market has stabilized significantly since the volatility of the pandemic era, when rates swung wildly with yearly increases of up to 18%.

This cooling trend has been attributed to a boom in apartment construction, which has temporarily outpaced renter demand in some markets. According to Redfin Senior Economist Sheharyar Bokhari, this gives tenants more leverage at least for now.

“With more inventory hitting the market, renters may find themselves in a rare position to negotiate perks like lower rent, flexible lease terms, or waived parking fees,” Bokhari said. “But those incentives might not last, as construction slows and rental demand picks back up.”

Restoring Trust in the Rental Process

For lawmakers like Rep. Gomez, the new bill represents more than just regulatory reform it’s about restoring dignity and stability for millions of Americans.

“In places like my district, where as many as 80% of residents rent, these junk fees are more than just a nuisance they’re a financial drain,” said Gomez. “This legislation brings much-needed fairness to the table and helps working families get one step closer to real housing security.”

As affordability concerns persist and housing equity gaps widen, advocates hope the End Junk Fees for Renters Act will mark a turning point in how renters are treated and how the housing system functions in America. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.