Final ‘Junk Fees’ Rule Excludes Rental Housing

Thanks to the tireless advocacy of the National Apartment Association (NAA) and its industry partners, the Federal Trade Commission (FTC) issued its final “junk fees” rule, Trade Regulation Rule on Unfair and Deceptive Fees, notably excluding the rental housing industry from additional regulation. 

Becoming effective 120 days after it is published in the Federal Register, the FTC’s final rule focuses on total price and fee disclosure requirements for live-event ticketing and short-term lodging industries. While the FTC notes no intended impact on rental housing providers, NAA is reviewing the short-term lodging provisions for any potential impacts. Read more.

Out of more than 70,000 comments received by the FTC, 3,800 NAA affiliate partners and members amplified our message urging the FTC to exclude the rental housing industry from this rule. As NAA and the National Multifamily Housing Council emphasized in our comments, the rule is inapplicable to our industry: 

[T]he rental housing transaction fundamentally differs from a typical hotel or live event ticket transaction because the landlord-tenant relationship involves an ongoing contractual relationship, typically at least a year-long commitment. It is subject to extensive regulation at the state and local level and is uniquely characterized by a series of transactions as opposed to a single-point transaction… Applicants and residents are informed of concierge-type services and benefits that could require changes to their housing costs in the lease and throughout the entire leasing process…  

As part of our advocacy, NAA also took a leadership role in crafting the national real estate trade groups’ coalition letter and secured a key opportunity for dialogue with FTC officials to raise key industry concerns and answer questions directly from regulators.  

While the industry’s exclusion from this rule is a significant development, NAA will remain vigilant for future efforts to regulate industry operations by the FTC. NAA thanks our affiliate partners and members for their steadfast commitment to fighting this regulatory overreach.