Austin City Council Implements Resolution to Enhance Rental Transparency and Combat Hidden Fees

Austin City Council Takes Steps to Protect Renters from Hidden Fees

In a significant move for renters in Austin, the City Council passed a resolution on Thursday aimed at reducing unexpected fees that can arise tied to lease agreements. This decision, which was met with some opposition from the Austin Apartment Association, is geared toward providing more transparency for tenants looking for housing in the area.

Details of the Resolution

The resolution, initiated by Council Member Ryan Alter, directs the city manager to collaborate with various stakeholders to create an ordinance that would apply to landlords managing five or more rental properties. If fully enacted, this ordinance would mandate landlords and property managers to offer prospective tenants a comprehensive list of all costs associated with renting a unit. This includes application fees, utility connection fees, and all recurring fees such as those for pest control, trash collection, facilities, and insurance.

However, it’s important to note that fees linked to lease violations or repairs due to damages caused by tenants will not be part of this ordinance.

Concerns from the Apartment Association

During discussions, Theresa Ebner, the president of the Austin Apartment Association, raised concerns about the new fee disclosure requirement. She explained that many of the services—like trash collection and pest control—are often provided by third-party vendors, which can complicate the accurate presentation of real-time fees. “It is standard practice in the industry to offer general cost summaries, but real-time fees can fluctuate due to changes in service providers,” she stated.

Ebner warned that introducing such an ordinance could unintentionally create stricter regulations and increase legal risks for property owners, which could ultimately impact rental pricing and availability.

The Industry’s Standard Approach

Another representative from the Apartment Association, Emily Blair, provided insights that the current lease template endorsed by the Texas Apartment Association has been recognized as a model for transparency by the U.S. Department of Housing and Urban Development. Since 2022, this template has been considered an industry standard for clearly outlining rental fees.

Federal Actions Against Hidden Fees

This local resolution aligns with broader efforts at various levels of government to combat hidden fees in housing. President Joe Biden recently held a meeting addressing the issue, and last year, the Federal Trade Commission proposed a rule to guard against hidden or “junk fees” in both business and rental housing sector.

On a state level, legislation has been discussed aiming to also prohibit hidden fees, reflecting a growing recognition of the burden these unexpected charges can impose on renters.

Affordability and Renters Rights

Council Member Ryan Alter emphasized that affordability goes beyond the initial price of renting an apartment. “It’s about what people pay every month. When these fees are hidden, either when signing a lease or appearing unexpectedly later on, it’s fundamentally unfair and many people can’t afford it,” he said prior to the unanimous vote by the Council.

Other Council members, including Vanessa Fuentes, Zo Qadri, Chito Vela, and José Velásquez, co-sponsored the resolution. It calls on the city manager to return with a proposed ordinance by June 2025, giving stakeholders time to prepare for potential changes.

The Implications for Renters

This resolution could provide significant benefits for renters in Austin by increasing transparency and allowing them to make more informed decisions before signing leases. As the city continues to navigate the challenges of housing affordability, such measures may ultimately lead to improved housing conditions and a more equitable rental market.