End Junk Fees for Renters Act
Summary
The "End Junk Fees for Renters Act" aims to protect tenants from excessive and unexpected fees associated with renting. It prohibits application and tenant screening fees and limits late fees to a maximum of 3% of the monthly rent, applicable only after a 15-day grace period. The bill also mandates landlords to disclose total monthly costs, past litigation, pest issues, and rent increase history to prospective tenants.
Expected Effects
If enacted, this bill would likely reduce the financial burden on renters by eliminating or capping certain fees. It would also increase transparency in the rental process through required disclosures. This could lead to improved affordability and a more equitable landlord-tenant relationship.
Potential Benefits
- Reduced upfront costs for renters by eliminating application and screening fees.
- Capped late fees, providing more financial flexibility for tenants.
- Increased transparency through mandatory disclosures of fees, litigation history, pest issues, and rent increases.
- Potentially improved tenant-landlord relations due to increased transparency and reduced financial burdens.
- May lead to more competitive rental markets as landlords focus on attracting tenants with transparent pricing.
Potential Disadvantages
- Potential for landlords to increase base rent to compensate for lost fee revenue.
- Increased administrative burden on landlords due to disclosure requirements.
- Possible reduction in services or amenities offered by landlords to offset lost income.
- Potential for disputes over what constitutes a "junk fee".
- Could disproportionately affect smaller landlords who rely on fees to cover costs.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily based on the Commerce Clause (Article I, Section 8), as it regulates activities related to housing and rental markets that affect interstate commerce. The federal government's involvement in housing through programs administered by HUD, the Department of Veterans Affairs, and the Department of Agriculture provides a basis for federal regulation. The Tenth Amendment reserves powers not delegated to the federal government to the states, but the Commerce Clause allows for federal regulation of economic activities that cross state lines.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).