Fee Transparency: What You Need to Know

What is rental housing fee transparency?

Rental housing fee transparency refers to legislative and regulatory efforts intended to ensure that rental housing providers provide clear and upfront information regarding fees associated with renting a property. The goal is to ensure renters understand the true cost of housing and protect renters from hidden fees that could lead to unexpected financial burdens. Policymakers expect that greater transparency will create a fairer rental market where prospective tenants can make informed decisions based on a clear understanding of the financial requirements of renting a specific property.

Importance of fee transparency 

1. Establishes clear pricing expectations: Rental fee transparency laws help safeguard tenants against unexpected and potentially burdensome expenses, ensuring they are aware of all required costs before signing a lease.
2. Drives marketplace efficiency: Transparent fees help prospective tenants compare rental listings more effectively and understand whether a rental fits their budget, allowing them to efficiently tour and apply to properties they can afford.
3. Builds trust between housing providers and tenants: By being upfront about fees, rental housing providers can foster a more trusting relationship with tenants, which may lead to better tenant retention and lower turnover rates.

What to know about fee transparency

Federal, state, and local governments have targeted “junk fees” and hidden fees across industries, requiring businesses to deliver consumers more transparent pricing up front. The Federal Trade Commission (FTC) recently enacted a "Junk Fees" Rule that excludes rental housing. However, recent FTC enforcement activity has offered useful guidance on how pricing practices in the rental housing market may be applied to housing providers under existing consumer protection standards. These developments underscore the importance of clear, upfront communication to help renters understand the full cost of housing. Spurred by the federal focus on fee transparency, numerous states have recently enacted requirements for disclosing fees in leases. Most recently, several states have passed laws or regulations addressing fee disclosure in advertisements. Rental fee transparency regulation most commonly focuses on the following key principles:

1. Total price: Regulations may require rental listings to display a calculated total price inclusive of base rent plus any monthly, mandatory fees. In some cases, the total price must be the most prominent pricing information shown. 
2. Disclosure of mandatory fees: Many laws call for clearly disclosing mandatory monthly and/or one-time fees that all tenants are required to pay.
3. Utilities: Some rules require listings to indicate whether utilities are included in the monthly rent or paid directly to a third-party provider. Transparency regarding account set-up, closing, and recurring charges may also be expected. 
4. Clear and Conspicuous display:  Regulations typically require that total price and related fees be presented in a way that is visible and easily accessible to prospective tenants. 

Beyond these principles, providing details about optional fees (e.g., pet deposit, pet rent, parking, storage) may also be required and can further provide prospective tenants with the pricing transparency they seek when making decisions about affordability.

State-level fee regulation

Rental housing fee regulations vary by state but generally fall into two categories: 

• States requiring disclosure of fees. In these states, housing providers must disclose all mandatory and optional fees.
  
  • Minnesota (1/1/24 effective date)
  • New Mexico (6/1/25 effective date)

• States requiring both disclosure of fees and prominent display of a total price. Housing providers in these states must disclose mandatory fees and ensure the most prominently advertised price is a pre-calculated total including base rent plus mandatory monthly fees.
  
  • Massachusetts (9/2/25 effective date) 
  • Connecticut (10/1/25 effective date) 
  • Colorado (1/1/26 effective date)

State regulations may include additional requirements such as fee caps or prohibitions, special disclosures for utilities, pricing based on lease length, and more. Because these laws are complex and vary by jurisdiction, we recommend consulting legal counsel and/or your local industry association for guidance.

Zillow’s commitment to fee transparency

Zillow fully supports efforts to inform consumers regarding rental fees as a core part of our mission to bring transparency and ease to the real estate experience. Fee transparency helps renters make informed housing decisions and improves efficiency for both renters and housing providers. Nearly all renters (94%) agree that rental listings should clearly list all fees, highlighting the importance of upfront pricing information in the rental search. 

The heightened scrutiny around fee disclosure has prompted the rentals industry to make meaningful strides to create the infrastructure and systems needed to share complete, clear, and accurate pricing information. Zillow is actively working with industry partners to establish standard practices for fee data syndication, creating greater consistency across the industry and ensuring that renters receive a comprehensive view of rental costs. Zillow is committed to working alongside housing providers and policymakers to promote a fair and transparent rental process. We believe that by supporting high standards for transparency, we can improve the experience for renters while enabling partners to meet their obligations and deliver on renter expectations.

Zillow is working with policymakers to ensure efforts to advance rental housing fee transparency take into account the complexities of the market and support solutions that benefit consumers, are feasible for the rental industry, and allow for a consistent user experience across states. See here for more details on the renter and partner solutions we’ve built to support.

This page is provided for general informational purposes only and does not constitute legal advice. The laws and regulations discussed may change and may apply differently depending on specific facts and jurisdictions. Readers should consult their own legal counsel to obtain advice specific to their circumstances.