New Bill Targets Hidden Rental Fees to Support Struggling Tenants

In an effort to address the growing housing affordability crisis in the U.S., Representative Maxwell Alejandro Frost and Senator Jeff Merkley have unveiled a bold new piece of legislation the End Junk Fees for Renters Act—which aims to curb deceptive and excessive rental fees that disproportionately impact working-class families.

The legislation, co-sponsored in the House by Representative Jimmy Gomez, Chair of the Congressional Renters Caucus, comes at a time when many Americans are being priced out of housing altogether. With rent continuing to consume a significant portion of household income, and homelessness rates on the rise, lawmakers are taking aim at what they describe as predatory practices by landlords and leasing agencies.

Cracking Down on Unnecessary Costs

The proposed bill is designed to boost transparency in the rental market and shield tenants from what advocates call “junk fees” surprise charges that are often tacked onto leases with little or no explanation.

If passed, the legislation would:

• Ban all application and screening fees, which often accumulate across multiple properties for prospective tenants.
• Cap late fees at 3% of monthly rent and require a 15-day grace period before penalties can be applied.
• Mandate full disclosure of key information in lease agreements, including:
  • Previous and ongoing legal disputes between landlords and tenants
  • Existing pest infestations or unresolved maintenance issues
  • Annual rent increases for the past 10 years
  • The total amount due each month, including all fees, to eliminate surprise charges

A Push for Equity and Transparency

“This bill is about standing with renters not corporate landlords,” said Rep. Frost. “It’s time to stop allowing people to be nickeled and dimed just for trying to secure a safe place to live. Working families deserve fairness, honesty, and stability in their housing.”

Sen. Merkley echoed that sentiment, adding: “Wealthy real estate firms are hiding fees in the fine print to inflate costs and maximize profit. This bill pushes back against those practices and gives renters the transparency they deserve.”

The Broader Market Landscape

While the bill targets rental fees, it arrives during a somewhat favorable moment for renters. A recent study by Redfin shows that the median asking rent across the U.S. declined by 0.5% year-over-year in June to $1,642 its fourth consecutive monthly drop. This slight cooling follows several years of volatile rent hikes and dips during the COVID-19 pandemic.

“Right now, renters have a bit more leverage,” said Sheharyar Bokhari, Senior Economist at Redfin. “We’re seeing a near-record supply of rental units, which puts pressure on landlords to offer better terms. But as new apartment construction slows down, that window of opportunity may not last long.”

Even with the modest drop, rents remain just $63 below the peak levels recorded in August 2022. Analysts warn that without structural reforms, affordability challenges will persist particularly in cities with high concentrations of renters and limited housing stock.

A Step Toward Stability

Rep. Jimmy Gomez, whose California district has one of the country’s highest renter populations, emphasized the importance of the bill in helping families regain control of their finances.

“For the nearly 80% of households in my district who rent, this legislation is about relief and stability,” Gomez said. “It will protect tenants from financial exploitation and restore some balance in a market that too often favors landlords.”

As the cost of living continues to climb, and the debate over housing reform intensifies across the country, the End Junk Fees for Renters Act could become a defining moment in the fight for housing justice. If enacted, it would mark a meaningful shift toward transparency, accountability, and fairness in the rental market giving millions of Americans a clearer path to secure and affordable housing. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.