Landlords in Austin may soon have to disclose any fees they plan to charge on top of rent before a prospective renter applies for an apartment.
Council members voted Thursday on a resolution requiring landlords who rent out at least five homes to divulge monthly and one-time fees, such as those related to pets, parking and trash collection. The council asked staff to finalize the new rule for a vote by next summer.
If made official, the ordinance would require landlords to disclose fees at the time a tenant applies for a rental home as opposed to when a renter is signing a lease. The council also asked staff to consider requiring landlords to disclose fees in apartment advertisements.
The rule, supporters say, would help renters better understand the true cost of an apartment before submitting an application.
“When these fees are hidden, whether it's at the leasing stage or popped on somebody months in, that’s unfair and a lot of people can’t afford it,” said Council Member Ryan Alter, who represents neighborhoods south of the river, before the vote late Thursday.
Earlier this year, researchers at UT Austin published a report detailing the rise of fees in rental housing. They found that it’s common for landlords to charge monthly fees for services such as valet trash, internet, cable, pest control and facilities upkeep. Often renters cannot opt out of these fees even when they don’t use these services.
“We’re seeing this around all segments of our economy,” said Shoshana Krieger, program director at the nonprofit Building and Strengthening Tenant Action, or BASTA, which works with low-income tenants. “We see this decoupling of expenses which used to be included in the cost of a product,” including concert and airline tickets.
It’s a phenomenon Sara Reeves has seen all over Austin. Reeves’ husband recently accepted a temporary job abroad and when they move out of the home they’re renting later this year she will move into her own apartment.
Reeves says she’s been using apartment listing services such as Zillow to look for places. But even though there is a section for landlords and managers to list additional fees, some opt not to. Reeves says she recently drove around to see apartments, only to learn that the monthly cost was typically $200 more than advertised because of added fees.
“Well, I just wasted all Saturday and a lot of gas to drive to all these places that I can’t actually afford,” she said. “Why are they separate to start with? What exactly does the base rent cover?”
Federal officials have tried recently to rein in so-called junk fees across industries, including rental housing. In 2023, the Biden administration announced it would crack down on added fees. The Federal Trade Commission has since proposed a rule requiring businesses, including rental property owners, to disclose fees upfront and explain what they pay for.
Cities and states have been passing their own rules in the past few years. Landlords in Minnesota, Rhode Island, New Hampshire and Utah are required to disclose non optional fees before a renter signs a lease. Some states go even further and limit or cap fees.
In Texas, there seems to be a bi-partisan interest in limiting fees charged by other industries. Last year, Republicans and Democrats in the House supported, but failed to pass, bills that would have limited fees charged on concert tickets.
At least one state lawmaker is looking into a bill similar to the resolution in Austin. State Sen. Judith Zaffirini, a Democrat whose district winds from South Austin to Laredo, said her staff is researching legislation that would require landlords to divulge mandatory fees in rental applications and ads.
But if Austin ends up adopting a rental fee disclosure rule, it’s more likely the state would block it or intervene. Last year, lawmakers passed the so-called "Death Star Bill," which prohibits municipalities from passing ordinances that go beyond the scope of state law. The law has been tied up in a legal battle and it’s not yet clear if it could be used against Austin in this case.
There is also local opposition to the proposed rule. The Austin Apartment Association represents owners and managers of more than 300,000 rental homes in Central Texas. Theresa Ebner, the organization’s president, said that it’s sometimes difficult to advertise exact fee amounts.
“It is standard practice in industry to offer general cost summaries, but real-time fees can fluctuate due to the change in the third-party service providers,” she told council members Thursday.
Emily Blair, the organization's executive vice president, said it has “always prioritized transparency” and pointed to a change made by the statewide chapter in 2022. That’s when the Texas Apartment Association added a section to the first page of its sample lease where landlords can disclose fees. The lease is used by landlords across the state.
Council members have asked city staff to bring an ordinance to them for a vote by June 30, 2025.
Support for KUT's reporting on housing news comes from the Austin Community Foundation. Sponsors do not influence KUT's editorial decisions.
