As the country faces a housing affordability and homelessness crisis that has broken records in recent years, more municipalities are examining ways to bring down costs. One target is rental “junk fees.”
Colorado began 2026 with a new law banning “hidden” fees for renters. New York City and San Diego have recently proposed ordinances designed to curb or require transparency concerning the fees.
“In the midst of an affordability crisis that is already pushing working New Yorkers out of their city, these deceptive practices put even more strain on household budgets,” New York Mayor Zohran Mamdani said in a Jan. 5 statement accompanying an executive order establishing a Citywide Junk Fee Taskforce and directing the Department of Consumer and Worker Protection to crack down on the fees.
Hidden “junk fees” for renters can include move-in fees, administrative fees, parking fees or pet fees. A 2024 Zillow survey found that 58% of renters pay some type of additional fee outside of their rent.
Several cities have already established junk fee regulations. In 2023, Shoreline, Washington, began requiring all fees to be listed in rental agreements and outlawed “common area” access fees. Last year, Ann Arbor, Michigan, capped rental application fees. San Diego’s pending ordinance would cap additional fees at 5% of the rent.
Colorado’s new regulation requires all mandatory rental fees to be advertised and outlaws charges for administration, unrendered services or payment processing.
Landlord organizations have voiced opposition to such regulation. The Apartment Association of Greater Los Angeles successfully pushed back on a state bill last year that would have enforced fee limits, calling the now-defunct measure “harmful.”
The National Consumer Law Center said in a November report that junk fees cost renters hundreds of millions of dollars every year, disproportionately impact renters of color, and can “push safe, affordable, and sustainable housing out of reach.”
