End Junk Fees for Renters Act
This bill bans application and tenant screening fees for rental properties that receive federal housing assistance or have government-backed mortgages. It caps late fees at less than 3 percent of monthly rent and allows them only after rent is at least 15 days overdue. Landlords would be required to disclose all monthly charges, 10 years of rent increase history, ongoing maintenance or pest problems, and past tenant lawsuits before a lease is signed. Additionally, debt collectors and landlords would be barred from reporting unpaid rental "junk fees" to credit bureaus.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- Renters and rental housing applicantsProtected from paying application fees and tenant screening or background check charges when applying for federally backed or assisted rental housing; late fees are capped at less than 3 percent of monthly rent and can only be assessed after 15 days; receive required disclosures on monthly fees, past litigation, pest/maintenance issues, and 10-year rent hike history; and protected from having unpaid rental junk fees reported to credit bureaus.
Who it burdens
- Landlords and property owners of federally assisted or backed housingProhibited from charging application, screening, or background check fees; restricted from charging late fees exceeding 3 percent of monthly rent or assessing late fees before rent is 15 days overdue; and required to make detailed pre-lease disclosures covering all monthly fees, tenant litigation history, pest and maintenance issues, and 10 years of rent increases.
- Debt collectors and credit furnishersBarred from reporting unpaid rental junk fees to consumer reporting agencies under a mandated CFPB and FTC rule classifying such reporting as an unfair debt collection practice under the Fair Debt Collection Practices Act.
- Federal regulatory agencies (HUD, VA, USDA, FHFA, CFPB, and FTC)Required to issue regulations and enforce restrictions on fees and required disclosures for covered rental units (HUD, VA, USDA, FHFA), while CFPB and FTC are mandated to issue joint rules within 180 days defining rental junk fees and banning their reporting to credit bureaus.
The provisions, in plain language.
Prohibits landlords of federally assisted or federally backed rental properties from charging application fees.
Prohibits landlords of federally assisted or federally backed rental properties from charging applicants fees for tenant screening, credit reports, or criminal background checks.
Restricts late fees on covered rental units to less than 3 percent of monthly rent, permits them only after rent is at least 15 days overdue, and requires leases to disclose these terms.
Requires landlords of covered rental units to disclose the total monthly payment including fees, past tenant litigation, ongoing pest and maintenance issues, and the previous 10 years of rent increases before a tenant signs a lease.
Directs the Consumer Financial Protection Bureau and the Federal Trade Commission to define rental junk fees and ban debt collectors from reporting unpaid rental junk fees to credit bureaus.