May 1, 2026

FTC & States Are Targetting Landlord Best Practices Around Marketing Of Rental Units

Federal and state regulators across the United States are increasingly targeting hidden fees in apartment rentals, with the goal of ensuring renters see the true cost of housing before they begin the leasing process. The Federal Trade Commission (FTC) has launched a formal review of rental housing fee practices and is examining whether landlords and property managers are misleading consumers by advertising a low rent while adding mandatory charges later. Fees under scrutiny include mandatory internet packages, amenity fees, valet trash charges, package locker fees, smart-home fees, and various administrative charges. Although a final federal rule has not yet been issued, the FTC has already pursued enforcement actions against several large housing providers, signaling that greater transparency requirements are likely coming.

At the same time, many states are moving ahead with their own legislation, often faster than federal regulators. States such as California, Connecticut, Oregon, New York, Colorado, Minnesota, and Virginia have adopted or are considering laws that require businesses—including housing providers—to disclose the full cost of a product or service upfront. These laws generally embrace an "all-in pricing" approach, meaning that any unavoidable fee should be included in the advertised price rather than disclosed later. The trend reflects growing concern among lawmakers that consumers are unable to accurately compare housing options when advertised rents exclude mandatory charges.

The primary issue regulators are attempting to address is the difference between an apartment's advertised rent and the amount a tenant is actually required to pay each month. For example, an apartment advertised at $1,950 per month may ultimately cost more than $2,200 once mandatory amenity fees, internet fees, trash collection fees, package management fees, and billing charges are added. Regulators increasingly view this practice as a form of "drip pricing," where the real cost is revealed only after a consumer has already invested time and effort in the rental process. Under the emerging regulatory framework, mandatory fees are being treated very differently from optional services such as parking, storage lockers, pet rent, or upgraded internet packages.

These developments could significantly reshape the apartment industry. Property owners, apartment operators, listing platforms such as Zillow and Apartments.com, leasing software providers, and proptech companies may all need to modify how rents are advertised and disclosed. Many landlords have relied on ancillary fees as an important source of revenue and as a way to advertise lower headline rents. If all mandatory charges must be included in advertised pricing, comparison shopping will become easier for renters, but operators may face increased pricing pressure and reduced flexibility in their marketing strategies. The overall direction of both federal and state policy is clear: renters should be able to understand the full recurring monthly cost of housing before they decide whether to pursue a lease.

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