FTC Proposed Rulemaking: Unfair or Deceptive Rental Housing Fee Practices
- glennhrussell77
- 6 days ago
- 3 min read
Updated: 5 days ago
FTC Advance Notice of Proposed Rulemaking: Unfair or Deceptive Rental Housing Fee Practices
On March 12, 2026, the Federal Trade Commission (FTC) issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking public comment on whether federal rules are needed to address unfair or deceptive fee practices in the rental housing market. The comment period closes on April 13, 2026. This is a critical opportunity for residential property managers to shape federal regulatory policy that will directly affect day-to-day operations.
The ANPRM covers the full lifecycle of a rental transaction—from application through move-out—and asks whether the FTC should create a comprehensive federal framework for rental fee transparency. It follows enforcement actions including the $24 million Greystar settlement (December 2025) and the $48 million Invitation Homes settlement (September 2024), as well as warning letters the FTC sent to 13 property management software providers in December 2025.
KEY STRATEGIC THEMES FOR YOUR COMMENTS
• Support transparency—residential PMs already disclose fees; a well-crafted rule can create a level playing field
• Distinguish residential PM from large corporate landlords—NARPM members are fiduciaries acting on behalf of individual property owners
• Emphasize that existing state and local regulation is extensive—any federal rule must harmonize, not conflict
• Highlight the cost-of-compliance burden on small operators—request safe harbors and reasonable implementation timelines
• Explain the legitimate business purpose behind common fees—they are not “junk” when tied to real services and costs
• Request that technology platform providers share the compliance responsibility
The ANPRM invites comment on six categories of rental fee practices:
Total Rent Disclosure: Whether rental housing providers clearly disclose the true total rent, including all mandatory fees and charges, or whether they advertise a base rent that excludes mandatory costs.
Fees and Charges: Whether providers clearly disclose the nature, purpose, amount, refundability, optionality, and recurrence of all fees throughout the lease lifecycle.
Application Fees: Whether application-fee practices—such as excessive fees, nondisclosure of terms, or charging multiple applicants for the same unit—harm consumers.
Security Deposits: Whether security-deposit practices—such as failing to provide clear terms, taking improper deductions, or delaying refunds—harm consumers.
Billing Issues: Whether billing practices such as inaccurate statements, undisclosed charges, or aggressive marketing of add-on products constitute unfair or deceptive acts.
Third-Party Service Providers: The role that third-party platforms and technology providers play in how rental pricing is advertised, and whether they impede transparent pricing.
The FTC is legally required to consider and respond to substantive public comments before proceeding with rulemaking. Every individual comment from a NARPM member adds to the record. Federal agencies pay attention to the volume and quality of comments, particularly those that provide first-hand data and practical perspectives that regulators may not otherwise have access to.
The residential property management industry is best served when professional practitioners—not just lobbyists and trade associations—participate directly in the regulatory process. Your comment does not need to be lengthy or lawyerly. It needs to be honest, specific, and grounded in your real-world experience managing properties and serving both owners and tenants.
As NARPM has demonstrated at the Capitol Summit and through its ongoing Governmental Affairs work, meeting with congressional staff and participating in federal proceedings changes the conversation. When regulators hear directly from the people who manage rentals for everyday Americans, it changes the temperature of the discussion. Take 30 minutes to submit a comment or repost online before April 13. It matters more than you think.
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