Mike Burke lives in a townhouse in Ogden with a mandatory internet package, a common area maintenance charge and a monthly “tax fee.” Utilities aside, he pays about $140 per month in fees — and he thinks this pricing structure is deceitful.
“It feels like they're not being upfront, they're not being honest,” said Burke, who works remotely for an energy company. “They're trying to advertise a lower cost to make it look more attractive.”
The common area maintenance fee baffles Burke. “It’s just a sitting area with a grill that I’ve never used,” he said. That fee, which is increasing in September, also covers lawn maintenance and snow removal.
“But that’s part of their job,” he said. “That’s why it’s a rental property.”
For Burke, these fees are annoying, though they’re not the end of the world. But he feels for someone for whom “that extra $50 or $100 or whatever makes a huge difference.”
The Weber Housing Authority has seen clients lose housing because of fees, said Executive Director Andi Beadles. They issue vouchers to low-income residents, which allows them to pay 30% to 40% of their income to the landlord, while the organization covers the rest.
Any add-ons are the renter’s responsibility.
“The housing authority can only pay rent. We cannot pay any additional fees,” said Beadles.
She recalled one man who had no income due to mental health issues. He found an apartment he liked, and he chose it despite its $135 in fees each month.
“We can’t steer any participant to any one certain unit, and he really wanted to go with this unit,” she said. The man thought he could come up with the money from family and friends, but he couldn’t.
“He ended up getting evicted. And if you are evicted on our program, then you lose your assistance as well.”
The Federal Trade Commission is considering a rule that would prohibit hidden or misleading fees for any business. Ariel Nelson, a staff attorney with the National Consumer Law Center, has seen an increase in rent-related fees around the country.
“It's really important that they are regulated and included at the federal level because they are so prevalent, and they also harm low-income people and renters of color in particular,” she said.
Landlords and rental companies, however, say they must charge fees for amenities to stay competitive in today’s market. Paul Smith, executive director of the Rental Housing Association of Utah, gave at-the-door trash pickup, or valet waste, as an example.
“Many modern tenants don't want to walk out to the dumpster in the rain and throw a dirty bag over a 6-foot-high metal wall and risk it breaking and going in their face.”
Prospective renters might narrow down their options based on cost. If one company advertised an all-inclusive price while another listed a potentially lower base rent, the first company would be at a disadvantage, said Smith.
“What every renter that's shopping needs to do is say, OK, I understand that's the base, but what are the add-ons? What are the additional things? Because it's just really not feasible for everyone to give a [total] price when packages and offerings and amenities and services provided are so different.”
Smith worked with Republican state Rep. Marsha Judkins to pass a 2021 state law that requires landlords to disclose the entire cost of rent before accepting an application fee.
“I can see why so many renters are so frustrated and so uncomfortable with rents and fees. We're as frustrated as anybody,” he said.
Smith believes the FTC proposal “would hurt the people it’s trying to help.” Consumers would still have to figure out which amenities are included in an advertised rent.
“We would argue a disclosure requirement like Utah has is better than this proposed FTC rule,” he said.
Nelson and the National Consumer Law Center advocate for the FTC to pass the ban on hidden or misleading fees. She said services should be optional or included in the rent.
“If you're charging all these fees separately, what does the rent include,” she wondered. “What is rent anymore?”
Macy Lipkin is a Report for America corps member who reports for KUER in northern Utah.
