A growing number of states are requiring landlords to include mandatory fees in their advertised rent. Here's what's changing and how property managers are adapting.
Updated January 2026
If you've been following industry news, you've likely seen headlines about "junk fees" and rental pricing transparency. Several states have passed laws requiring that mandatory fees be included in advertised rent, and the FTC has signaled interest in the rental housing sector.
This isn't a sky-is-falling situation, but it is a shift worth understanding, especially if your current pricing structure includes separate charges for things like resident benefit packages, utility administration, or other mandatory monthly fees.
The core idea behind these regulations is straightforward: renters should be able to see the actual monthly cost when browsing listings, not a base rent that increases once mandatory fees are added.
States like Colorado, Massachusetts, and Connecticut have passed laws requiring "all-in" pricing for rental advertisements. The specifics vary:
At the federal level, the FTC's Junk Fees Rule (effective May 2025) covers short-term lodging and live events, but does not currently cover long-term rental housing.
However, the FTC has taken enforcement action against rental housing operators under Section 5 of the FTC Act, which prohibits "unfair or deceptive acts or practices." This has resulted in settlements with Greystar and Invitation Homes.
In December 2025, the FTC sent warning letters to property management software providers, urging them to review their platforms and ensure they don't prevent property managers from displaying total rental prices, inclusive of all mandatory fees. The letter cited recent enforcement actions against Invitation Homes ($48M) and Greystar ($24M) for excluding mandatory fees from advertised rent.
The same day, the FTC published guidance for property managers stating:
"Advertising a rental price that does not include fees the renter will be required to pay for the rental is a deceptive practice that violates the FTC Act."
— FTC Letter to Property Management Software Providers, December 8, 2025
The letter also noted that FTC Chairman Andrew Ferguson has directed staff to begin the rulemaking process for a rental housing-specific fee transparency rule, though this has not yet been finalized.
The key distinction in most of these regulations is whether a fee is truly optional or effectively mandatory. A fee that tenants can technically decline but almost never do may still be considered mandatory under these rules.
If you currently advertise a base rent and charge separate mandatory fees, these regulations would require combining them. Use the calculator below to see what that would look like for your portfolio.
Enter your current pricing to see the potential impact
Include RBP fees, utility admin fees, trash fees, or any other charges tenants can't opt out of.
The inquiry estimate is based on NBER research showing housing demand decreases approximately 0.67% for every 1% increase in price. Your actual results will vary based on market conditions and competition.
There's no single "right" answer here. Different operators are taking different approaches based on their markets, portfolio size, and business model. Here are the main options:
The simplest approach: roll your mandatory fees into the base rent. Your total revenue stays the same, but your listings will show a higher number than competitors who haven't made this change yet. In competitive markets, this can affect positioning.
Some operators are restructuring their fee programs to be genuinely optional, which may exempt them from disclosure requirements. This requires careful implementation to ensure the fees are actually optional in practice, not just on paper.
Rather than charging tenants directly, some PMs are generating revenue through services that don't require tenant-facing fees. This maintains revenue without affecting advertised rent or adding to tenant costs.
If you're exploring Option C, there are several ways to generate ancillary revenue without charging tenants. One example is utility and internet setup services.
When tenants move in, they need to set up utilities and internet. Services like Utility Profit help facilitate this process at no cost to the tenant or property manager. Revenue is generated through referral partnerships with internet providers when tenants sign up for service.
The tenant sees all available providers for their address, including ones that don't generate referral revenue. Their data isn't sold or shared. They just get a useful tool that helps them set up utilities, and you earn revenue when they choose an internet provider.
Based on your portfolio size
Estimates based on typical activation rates. Actual revenue varies by market and internet provider availability.
If you'd like to see how Utility Profit works with your specific portfolio, book a quick demo with our team.