New law targets ‘hidden fees' for renters
Have you run into sneaky fees when booking a hotel, renting a car, or searching for a flight? Those charges can also be frustrating for people looking to rent an apartment.
Advocates for renters are hopeful a new state law will make a difference.
The average rent in Connecticut is down about $50 from this time last year, according to Zillow. But it’s still about $1,900 a month. And now, more people are dealing with “hidden fees.”
The average monthly fees, which include charges like an application or amenity fee, are $65, adding up to an extra $780 a year, according to Apartments.com.
“It’s sort of like bait and switch in many ways for people, and this, even when you think you’re financially stable enough to manage the housing costs, you find out all of a sudden that it’s going to be costing you hundreds of dollars more than you planned,” said Samaila Adelaiye, a research and policy fellow at the Partnership for Strong Communities.
The new state law will require those extra fees to be clearly disclosed in the apartment ad.
“That’s the intent, so that as a renter, you go in knowing, ‘This is what it’s actually going to cost me per month,’ whether it’s rent, parking, and whatever the other individual pieces are broken out or included in one number,” said Michael Santoro, policy research director of the Housing Department. “Either one is acceptable as long as you get to see all of it up front.”
So what do landlords think about this?
We spoke with John Souza, president of the Connecticut Coalition of Property Owners, which represents small and mid-size landlords. He said that although his group didn’t necessarily oppose the law, he sees where issues could develop.
“The small mom and pop out there that just have a two- or three-family, if it causes them trouble … because they ‘didn’t disclose their fees,’ even if they don’t have any fees, it’s just one more piece of red tape to make your life miserable if you’re a small business owner,” Souza said.
There is, however, already a way to determine your total rent. Apartments.com notes Connecticut is among six states that require it to be disclosed, while others are considering it.
Apartments.com also said that three in four renters stop considering an apartment if they encounter unexpected fees that push the cost beyond their budget.
“These hidden costs can actually ultimately change renter decisions dramatically,” said Arjun Ananda, director of product at Apartments.com. “The takeaway here really is that renters deserve a lot of clarity upfront when it comes to pricing, and asking for the full monthly cost early in the process can save them time, stress, and surprises.”
The new law, known as Connecticut’s total price law, has some exceptions, such as including fees for pets and certain utilities in the total rent.
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