On March 12, the FTC announced that it has issued an advance notice of proposed rulemaking (ANPR) to determine the need for a rule to address unfair or deceptive acts or practices related to advertised rent and other fees and charges in the rental housing industry. The agency requested public comment on 74 questions covering the prevalence of hidden or misleading fees and charges throughout the lease lifecycle. Topics include: (i) application, holding and reservation fees; (ii) amenity and technology fees; (iii) utility and administrative fees; (iv) late fees; and (v) move-out fees and charges. The notice raised concerns about advertised rents that fail to include all mandatory fees and charges, security deposit practices lacking transparency, and the role of property management software providers, listing services, and online rental platforms in displaying pricing information. The FTC stated these practices may undermine competition, increase consumer search costs, and violate federal law, including the FTC Act and the GLBA.

The ANPR also addresses the feasibility of requiring disclosures of “true total rent” including all mandatory recurring and one-time charges, as well as the treatment of variable or contingent costs such as utilities. Additional questions focus on security deposit criteria and documentation, the interaction of federal requirements with state and local laws, possible exemptions for certain providers, and definitions of covered entities and fees. The FTC requested input on structuring any potential rule to maximize consumer benefit and minimize compliance burdens. Comments are due by April 13.