For too long, multifamily has lived with a quiet contradiction. We talk about “renter experience” and “customer centricity,” but too often, we bury fees in fine print and call it good business.
Now, that era is ending. And that’s a good thing.
Regulation Is Here, But True Reform Should Start Within
The federal push to curb “junk fees” didn’t materialize out of nowhere. Hidden charges, surprise add-ons and vague lease disclosures have made housing costs unpredictable for millions of renters.
While some operators lump these rules in with political rent-control fights, the truth is simpler: Renters deserve to know what they’re paying for. This shouldn’t be a partisan debate. Housing impacts everyone, and fee transparency is common sense.The industry’s choice is clear: Define fair practices ourselves, or wait as regulators continue to do it for us, city by city or state by state.
That wave is already building. Transparency has officially reached multifamily, as operators adopt up-front fee frameworks and state lawmakers codify total-price requirements. In parallel, Minnesota, Colorado and Maryland are among the states leading a nationwide push for clear, first-page fee listings, setting the tone for what may soon become the national standard. Both outlets highlight the same inflection point.
What Makes A Fee ‘Junk’?
Not every fee is bad. Pest control, trash removal or credit reporting are legitimate services with real costs. They become junk fees when they’re mandatory, undisclosed until the last minute or wrapped into a 50-page lease that renters don’t have time to parse.
Late disclosure turns these fees from service costs into gotchas. By the time a renter learns about them, they’ve already given notice, paid movers and can’t start over.
That’s why transparency has to happen early, not in the lease-signing moment of truth but at the first quote. The fix is simple: If airlines can let travelers opt into travel insurance, leasing tech can let renters opt into—or out of—add-on services before they apply.
Transparency Is Good Business, Not Just Good Ethics
Hidden fees don’t just frustrate renters; they erode renewal rates, brand trust and online reputation. Renters who feel misled are less likely to renew, refer or speak positively about your brand.
In today’s “Amazon-effect” economy, people expect the same clarity from housing as they get from a shopping cart. They want to see what happens when they add a pet, parking space or package service. Posting a fee list somewhere in the fine print doesn’t count—it’s “transparency theater.”
The real solution isn’t a memo or apology. It’s operational: a single source of truth for fees across every community in a property management company’s portfolio, integrated into the leasing journey itself. No patchwork spreadsheets, no manual disclaimers, no excuses.
The Nuance: Not All Fees Are Created Equal
One hot-button example is application fees. They’re often miscast as junk fees, but screening applicants carries legitimate costs. Fraud in rental applications is exploding: industry reports show a majority of operators experienced fraud last year, incurring millions in losses.
Screening costs money, and disclosing that cost upfront is the responsible way to protect both renters and owners. The distinction is timing and transparency, not whether the fee exists at all.
Vendors Share The Blame And The Responsibility
Suppliers haven’t been innocent here either. Many software vendors built business models around monetizing renter payments or bundling late-stage “optional” services that management companies profit from. The model is ethical only when renters clearly opt in early in the leasing process and know where their money is going.
If we want to build trust in our industry, vendors must design systems that make transparency the default.
Looking Ahead: The Future Belongs To The Honest
In my earlier Forbes article, I argued that the multifamily space had a chance to lead on fee clarity and define it on our own terms. That chance is now. The companies that act now will lead the next decade of multifamily. Those who wait for regulation will simply react to it.
Housing affordability won’t be solved overnight. But we can start by being honest about costs, upfront and everywhere. Because renters don’t just remember what they paid; they remember how you made them feel. And nothing makes people feel more at home than honesty.
