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Utah renters advocate cheers as Biden Administration goes after ‘junk fees’

Posted at 4:37 PM, Jul 21, 2023
and last updated 2023-07-21 18:37:06-04

SALT LAKE CITY — What it costs to rent an apartment may be clearer after the Biden administration secured transparency commitments from Zillow, Apartments.com and AffordableHousing.com.

The websites have committed to listing upfront costs a person would incur if they choose to inquire or rent a property.

“I’m excited that it’s at the national level,” said Tara Rollins, executive director of the Utah Housing Coalition.

Rollins said the moves could help renters shop around and ultimately slow or even reduce rental costs.

“What just came out is some guidelines,” Rollins said, “so people can make better decisions. It is going to make it more affordable for someone to not be not get into a place they can’t afford.”

In May, FOX 13 News talked to Spencer Bloodworth. He and his wife then lived in an apartment complex one block north of Temple Square.

The couple paid $1,600 a month rent for a one-bedroom, 700-square-foot apartment. Then they paid fees like $40 to maintain the common areas.

Bloodworth rattled off the other fees on his monthly bill.

“And then $50 to have a cat here,” Bloodworth said.

“One hundred dollars for a garage.”

“Sixty-five dollars mandatory internet You can't opt out of internet.”

“Six dollars and 50 cents service fee. I don't know what that's for.”

“One hundred thirty-six dollars last month for heat.”

“A $34 charge for sewer.”

“Thirty-five dollars charge for water.”

“And then an $18 charge for trash.”

It added to $484.50 in fees.

Zillow launched a new feature on Wednesday called the "Cost of Renting Summary." It details all costs associated with the rental property, including security deposits and application fees.

Apartments.com said it would be launching a new calculator on its platform that will detail the prices of all upfront costs and recurring monthly fees.

Lastly, AffordableHousing.com said it will now require owners to disclose all refundable and non-refundable fees in their listings.

"By providing the true costs of rent, people can make an informed decision about where to live and not be surprised by additional costs that push them over budget," the White House said in a statement.

The White House is also asking Congress to step in and address "junk fees."

Later this month, the Senate Committee on Banking, Housing, and Urban Affairs will host its first-ever hearing on the fees. In addition, the Department of Housing and Urban Development has laid out strategies that policymakers implement to reduce the unexpected fees renters face. They include eliminating or capping application fees, allowing prospective renters to provide their own screening reports and allowing a single application fee to cover inquiries of multiple homes.

"Too often, renters are hit with unexpected fees on top of their rent," said HUD Secretary Marcia L. Fudge. "Today’s announcement shows the Biden-Harris Administration’s commitment to lower costs for renters and build a fairer, more transparent rental housing marketplace."

The Biden Administration also encouraged states to pass laws cracking down on rental fees.

The Utah Legislature in 2020 passed a statute aimed at increasing fee transparency, but Rollins said there’s a problem.

“The current law,” she said, “right now, it has no teeth. It's just used as best practice.”

Rollins said any Utah renter who feels they have been hit with an unfair fee should speak to the landlord, or seek mediation through the group called Utah community action.

It’s all too late to keep Bloodworth and his wife in Utah. Saying it was too expensive to live in Salt Lake City, the couple has moved to Wisconsin

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