Across the US, lawmakers are working on improving tenant protection and increasing housing affordability. One of the areas getting the most attention?

Fee transparency.

Several new laws are changing how landlords must disclose rental prices, ensuring tenants know the full cost of the rental upfront, before they’ve applied or signed a lease.

In this article, we’ll go over the new transparency laws that will take effect starting in 2025 (and beyond) across California.

California

Starting July 1, 2024, California’s SB 478, also known as the “Honest Pricing Law,” makes it illegal for businesses (including housing providers) to advertise a price that excludes all required fees (not including government taxes or shipping).

This law targets drip pricing, where a low initial price is advertised and additional fees appear later. Now, the price renters see on listings and at the time of signing should reflect what they’ll actually pay.

Landlords must include all mandatory charges in rental listings, helping improve pricing transparency so tenants can be informed before they move in.

Why These Laws Matter

These changes are all part of a national movement to eliminate hidden fees (otherwise known as “junk fees”) and promote fair, transparent housing practices. With states like California and Massachusetts leading the way, more states are likely to follow.

How Landlords Can Prepare

To stay compliant and continue building trust with your tenants, here are a few tips:

  • Audit your current listings to ensure all fees are clearly stated
  • Review your leasing flow so the total price is shown before collecting renter info
  • Update leases with auto-renewal disclosures that are simple and easy to understand

Final Thoughts

While updating your processes to reflect these new laws can be time-consuming, know that fee transparency is a benefit that both landlords and tenants can experience. Providing upfront pricing builds trust and ensures tenants are fully prepared to rent your property.

Sources:

  1. https://oag.ca.gov/hiddenfees
  2. https://www.mainepublic.org/politics/2024-12-31/new-maine-law-to-require-total-price-disclosure-of-rental-housing
  3. https://homelinemn.org/9843/groundbreaking-new-tenant-protection-laws-await-governors-signature