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Renters nationwide are raising concerns about hidden fees, prompting the Federal Trade Commission to investigate rental housing costs.
CHARLOTTE, N.C. — Renters across the country are raising concerns about hidden fees in rental housing, and now the Federal Trade Commission (FTC) is stepping in.
The FTC is currently collecting information from renters nationwide about the true cost of housing, including rent, application fees, and security deposits. The agency says its goal is to crack down on rental companies that fail to clearly disclose fees or attempt to work around federal regulations.
Housing advocates say the issue has been a long-standing problem.
“People sign the lease, and then there’s all of these hidden fees,” said Robert Dawkins, Political Director of Action NC.
The FTC has already taken action against some of the nation’s largest property management companies. Greystar Real Estate Partners has been ordered to pay $23 million over undisclosed fees, while Invitation Homes agreed to pay $48 million to settle similar allegations. Some of those funds may be returned to affected renters, including those in Charlotte.
Experts say a lack of standardization in lease agreements allows these practices to persist.
“There is no requirement for lease applications or contracts to be standardized, which leaves room for manipulation,” Youngqiang Chu, a professor of real estate and urban economics at UNC Charlotte, said.
The FTC warns that when companies fail to disclose the true cost of rent, it not only harms renters financially but also creates an uneven playing field for landlords who follow the rules.
Chu says education is key, urging renters to carefully review lease agreements and fully understand all costs before signing.
Meanwhile, advocates are calling for stronger federal oversight, especially for large rental companies operating across multiple cities and states.
The FTC is accepting public comments on the issue through April 13. Renters who believe they’ve been impacted by hidden fees can submit their experiences online or by mail.
A link to submit your comments can be found here.
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