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FTC Seeks Public Comment on a Proposed Rulemaking Regarding Unfair or Deceptive Rental Housing Fee Practices

No specific entity targetedMarch 12, 2026Federal Trade Commission

Summary

The Federal Trade Commission is seeking public comment on an Advance Notice of Proposed Rulemaking to address unfair or deceptive rental housing fee practices, including hidden mandatory fees not disclosed in advertised rent. The proposed rule would require clear disclosure of total rent and all associated fees, and would allow the FTC to seek civil penalties for violations. Past FTC enforcement actions against Invitation Homes and Greystar Real Estate Partners resulted in $48 million and $24 million settlements, respectively, for deceptive rent advertising practices.

Contract Impact

In-house legal teams at rental housing providers, property management companies, and related vendors should review lease agreements, advertising contracts, and service provider agreements to ensure compliance with potential FTC rules on rental fee transparency. Lease agreements must include clear, conspicuous disclosures of all mandatory fees (application, security deposit, monthly recurring fees) and the total rent including all charges. Advertising contracts should prohibit misleading rent advertisements that exclude mandatory fees, and clauses related to fee refundability, optionality, and recurrence should be updated to align with proposed disclosure requirements. Vendor agreements with property management software providers should ensure fee disclosure features comply with the anticipated rule.

Contract Search Terms

total rent disclosuremandatory rental feesfee refundability clauserental application fee termssecurity depositpracticeshidden fee prohibitionrental advertising compliance

Laws Cited

Violation Types

Entity Details

Entity

No specific entity targeted

Industry

Real Estate

Official Sources

Source Evidence

Title
"FTC Seeks Public Comment on a Proposed Rulemaking Regarding Unfair or Deceptive Rental Housing Fee Practices"
Event Date
"March 12, 2026"
Jurisdiction
"Federal Trade Commission"
Entity Name
"Invitation Homes, the largest single-family home rental housing provider in the country"
Laws Cited
"Unfair and deceptive rental housing fee practices violate federal law."
Laws Cited
"violated the FTC Act by, among other things, excluding mandatory monthly fees from the advertised rent."

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