HR4100-119

What This Bill Does

The End Junk Fees for Renters Act targets fees charged in federally connected rental housing. The appropriate regulator must prohibit owners of covered dwelling units from charging application fees or fees for criminal history, tenant screening, consumer reports, or other background checks. Regulators must allow late-rent fees only if they are less than 3 percent of monthly rent and only after 15 days have elapsed from the due date. Owners must disclose in leases and before signing the total monthly amount including fees, past litigation with tenants where practicable, ongoing pest and maintenance issues, and the past 10 years of rent increases. CFPB and the FTC must issue a rule within 180 days defining rental housing junk fees and finding that furnishing unpaid junk-fee information to a consumer reporting agency is an unfair or unconscionable debt-collection method under the FDCPA.

Who Benefits and How

Renter households benefit because covered landlords cannot charge application or background-check fees. Tenants paying rent late benefit from a cap below 3 percent of monthly rent and a 15-day waiting period before late fees. Rental applicants benefit from pre-lease disclosure of total monthly costs, tenant litigation history, pest issues, maintenance issues, and rent increases. Consumer credit advocates benefit because unpaid rental junk-fee reporting becomes an unfair or unconscionable collection practice.

Who Bears the Burden and How

Owners of covered dwelling units lose application-fee and screening-fee revenue and must comply with fee caps and disclosure duties. HUD, FHFA, USDA, and other appropriate regulators must write and enforce covered-unit rules. CFPB and FTC must define rental junk fees and issue the debt-collection rule within 180 days. Consumer reporting agencies may receive less unpaid junk-fee information from rental debt collectors.

Key Provisions

• Prohibits application fees and tenant-screening or background-check charges for covered dwelling units.
• Limits late fees to less than 3 percent of monthly rent and only after 15 days.
• Requires pre-lease disclosures on total monthly cost, litigation, pests, maintenance, and 10-year rent increases.
• Requires CFPB and FTC rulemaking on rental junk fees and credit reporting of unpaid junk fees.