Rental Junk Fees: What Property Managers Should Review

What Are Rental Junk Fees?

Rental “junk fees” usually refers to charges hidden in the advertised price or explained misleadingly. A fee is not automatically illegal because it pays for trash service, a package room or a resident benefit. The questions are whether the charge is allowed, accurately described, clearly disclosed and genuinely optional if advertised that way.

• Valet trash fees
• Smart lock fees
• Pest control or HVAC maintenance fees
• Package delivery service fees

The FTC and Colorado alleged that Greystar hid mandatory charges on top of advertised rent. In December 2025, Greystar agreed to pay $24 million to resolve those allegations. The case is a reason to examine the complete renter price, rather than assume a signed lease cures an earlier misleading advertisement.

What the federal rules actually cover

The FTC’s fee rule that took effect in May 2025 covers live-event tickets and short-term lodging. Its FAQ explicitly excludes long-term rental housing with an ongoing landlord-tenant relationship. Do not apply its lodging provisions as a nationwide apartment-rental statute.

In March 2026, the FTC opened a separate rental-housing fee rulemaking. The notice seeks evidence about advertising, consent and fees from application through move-out; it is not itself a final rule. Existing consumer-protection and state or local housing laws still matter.

A practical fee audit

1. Full Disclosure of Fees Upfront

List every charge a resident can incur: recurring mandatory fees, optional services, application and move-in costs, usage-based charges and move-out charges. Record the amount or calculation, recipient, refundability and legal basis.

• Pro Tip: Don’t label something as a convenience or amenity if it’s mandatory.

2. Consistency Across Documents

Compare the listing, tour script, application, lease, addenda and resident ledger. A renter should be able to recognize the same charges at every stage. Supply accurate fee information to third-party listing sites too.

For example, $1,800 base rent plus a required $25 trash charge and a required $15 package charge creates $1,840 in fixed monthly charges. Present that total clearly, with the components identified. Explain separately any permitted variable utilities and optional services.

3. Compliance with State and Local Laws

Check the law for the actual property and housing program. Disclosure does not make a prohibited fee lawful. Caps, permitted payment methods, deposit rules and treatment as rent may differ across jurisdictions.

4. Avoid Fees That Could Be Interpreted as Rent Padding

Describe the service residents receive and when it starts. Avoid vague labels, preselected optional purchases and charges for unavailable services. Make cancellation, correction and refund processes easy to find.

Resident programs need the same scrutiny

A deposit alternative, liability waiver or benefits package can have a legitimate purpose, but none is an automatic exemption from fee rules. Before offering one, review its selected terms, permitted enrollment, recurring cost, exclusions and resident obligations.

For a deposit alternative, explain whether fees are nonrefundable and whether the resident can still owe money after damage. For a liability waiver, distinguish property protection from the resident’s own renters insurance. For benefits, identify the selected services and how residents activate them.

Beagle’s program proposal and approved lease disclosures should be reviewed together. A transparent product description supports that work; it does not guarantee that every use of the program is compliant.

Protect NOI with a clear decision

Calculate net contribution after service costs, administration and refunds. If a charge only works when residents overlook it, redesign the offer. A useful optional service should have a clear price and a real choice; a mandatory charge belongs in the complete cost explanation.

Assign one owner to update listings, documents and staff scripts whenever a charge changes. Review a sample of new resident ledgers to confirm the advertised and billed costs match.