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What Are Rental Junk Fees?
Rental junk fees are extra charges added to a tenant’s rent that are not clearly disclosed up front. The FTC defines them as fees that are either deceptive or unavoidable and not meaningfully communicated in the rental listing or lease agreement. These can include:
- Valet trash fees
- Smart lock fees
- Pest control or HVAC maintenance fees
- Concession clawbacks
- Package delivery service fees
According to the FTC’s January 2025 complaint against Greystar, these charges cost tenants hundreds of millions of dollars collectively and made it nearly impossible to comparison shop for apartments fairly.
What Does Property Manager Compliance Require?
Staying on the right side of the law means embracing property manager compliance standards that go beyond basic lease templates. These are the key areas of focus:
1. Full Disclosure of Fees Upfront
Lease agreements and online listings must clearly identify all fees, including non-optional service fees, administration charges, and third-party fees.
- Pro Tip: Don’t label something as a convenience or amenity if it’s mandatory.
2. Consistency Across Documents
One of the core issues cited in the Greystar lawsuit was inconsistency between the advertised rent and the actual lease terms. All documentation—online, in print, and in the lease—must match.
3. Compliance with State and Local Laws
States like California, Colorado, and New York are moving fast to pass new rules. For instance, California’s new disclosure laws require landlords to present a single, itemized total cost of rent, including all fees.
Check with your state’s:
- Department of Consumer Protection
- Attorney General’s Office
- Department of Real Estate (DRE)
4. Avoid Fees That Could Be Interpreted as Rent Padding
Fees must reflect actual services provided and should not be used to artificially reduce advertised rent. Regulators are watching.
What Happens If You Don’t Comply?
Failure to comply with rental fee disclosure laws opens the door to:
- Class action lawsuits
- Regulatory fines
- Tenant churn and reputation damage
For example, Greystar is now facing additional lawsuits in California, Texas, and Maryland.
Smart Alternatives to Junk Fees
Instead of tacking on fees, property managers are turning to transparent, value-driven programs to drive revenue while staying compliant. This is where Beagle’s programs shine.
Beagle’s Security Deposit Alternative
Traditional security deposits are a top reason tenants hesitate to sign. Beagle offers a program that lets tenants move in with a small monthly fee instead of a large upfront deposit.
- Increases lease conversions
- Reduces vacancy time
- Fully disclosed and compliant
Tenant Legal Liability Waiver
Chasing down renters insurance policies is time-consuming and fraught with compliance risk. Beagle’s TLL Waiver protects your property from day one—no policy verifications required.
- No enforcement burden on your staff
- Clear, upfront pricing to tenants
- Immediate protection
Resident Benefit Packages
Want to add more value without hidden costs? Offer benefits tenants actually want:
- Rent reporting
- Identity theft protection
- Move-in concierge
And the best part? Beagle’s programs are designed to be fully transparent, with no hidden fees or confusing structures.
How to Stay Ahead of the Regulatory Curve
Subscribe to Reputable Sources:
- National Apartment Association
- Multifamily Dive
- FTC Rental Guidance
- Consumer Financial Protection Bureau
Train Your Leasing Staff
Ensure everyone on your team understands:
- What constitutes a junk fee
- How to present full rental cost disclosures
- Where Beagle programs fit in
FAQs
Q: What’s the difference between a fee and rent under new laws?
A: If it’s mandatory, it likely must be disclosed as part of the advertised rent in many jurisdictions.
Q: Can I still charge for amenities like valet trash?
A: Yes, but only if they are optional or disclosed clearly. If mandatory, they must be disclosed in total rent.
Q: Are Beagle’s products compliant with new regulations?
A: Yes. Beagle’s programs are fully transparent and built to be disclosed upfront in leasing materials.
Q: How can I transition away from junk fees without losing NOI?
A: Replace hidden fees with disclosed, high-value offerings like Beagle’s deposit alternative and benefit packages.
Related Links
- FTC Complaint Against Greystar (2025)
- Reuters – Greystar Class Action Suits
- Consumer Finance Protection Bureau – Junk Fee Action
- Beagle for Property Managers
- Beagle Security Deposit Alternative
- Beagle Tenant Legal Liability Waiver
Ready to replace risky fees with compliant revenue streams?
Book a demo with Beagle and protect your property while making move-ins easier and more transparent for tenants.
Beagle is the #1 platform for property managers to launch profit-maximizing reinsurance and resident benefit programs that tenants love through our association.
Book a Demo Today
