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 landlords from charging application and tenant screening fees. It also regulates late fees, limiting them to less than 3% of monthly rent and imposing them only after a 15-day grace period.
Expected Effects
If enacted, this bill would lead to more transparent rental agreements and reduced upfront and late-payment costs for renters. Landlords would be required to disclose all fees, past litigation, pest issues, and rent increase history. The Bureau of Consumer Financial Protection and the Federal Trade Commission would define "junk fee" and address debt collection practices related to them.
Potential Benefits
- Reduced financial burden on renters due to elimination of application and screening fees.
- More predictable and manageable late fees, preventing excessive charges.
- Increased transparency in rental agreements through required disclosures.
- Potentially reduced disputes between landlords and tenants due to clearer fee structures.
- Protection against aggressive debt collection practices related to rental junk fees.
Most Benefited Areas:
Potential Disadvantages
- Potential for landlords to increase base rent to compensate for lost fee revenue.
- Possible reduction in services or amenities offered by landlords to offset lost income.
- Increased administrative burden on landlords to comply with disclosure requirements.
- Potential legal challenges from landlords arguing the regulations infringe on their property rights.
- Possible unintended consequences in the rental market due to regulatory intervention.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is complex. While the Constitution doesn't explicitly address landlord-tenant regulations, Congress's power to regulate interstate commerce (Article I, Section 8) could be invoked to justify federal intervention in rental practices, especially concerning federally-backed mortgages. However, the Tenth Amendment reserves powers not delegated to the federal government to the states, raising questions about the extent to which the federal government can regulate local rental markets. The bill could be seen as promoting fairness and protecting vulnerable populations, aligning with the general welfare clause.
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).