New Jersey Attorney General Jennifer Davenport led a bipartisan coalition of 27 state attorneys general in submitting a comment letter to the Federal Trade Commission urging federal rulemaking to regulate hidden and deceptive rental housing fees. The AG also issued guidance clarifying New Jersey’s new $50 rental application fee cap, effective May 1, 2026, warning that deceptive fee practices may violate the New Jersey Consumer Fraud Act. No specific enforcement action against a named individual entity was announced, with enforcement of the fee cap set to begin May 1, 2026.
The multistate coalition urged the FTC to propose rules requiring full rental price disclosure, prohibiting deceptive rental fee practices, and preserving state regulatory authority. The NJ AG issued guidance clarifying that the $50 application fee cap applies to all associated costs including administrative and screening fees, and that charging fees for unavailable units, collecting fees from unqualified applicants, or soliciting excessive applications may violate the Consumer Fraud Act. Enforcement of the fee cap begins May 1, 2026.
In-house legal teams for real estate and property management companies should review lease agreements, rental application forms, and fee disclosure documents to ensure compliance with New Jersey’s $50 rental application fee cap effective May 1, 2026. Clauses related to application fees, administrative or screening costs, and fee disclosure must be updated to include all associated costs and cap total fees at $50. Teams should also add prohibitions on charging fees for unavailable rental units, collecting fees from knowingly unqualified applicants, or soliciting excessive applications, as these practices may violate the New Jersey Consumer Fraud Act. For multi-state operators, review fee practices across all jurisdictions to align with the bipartisan coalition’s call for transparent, non-deceptive rental fee practices.
Entity
New Jersey Landlords (general population, no specific entity named)
Industry
Real EstateOfficial Press Release
https://www.njoag.gov/attorney-general-davenport-leads-bipartisan-multistate-call-for-federal-action-on-rental-housing-fee-abuses-puts-new-jersey-landlords-on-notice-of-states-application-fee-cap/
2026 0413 Letter to FTC Rental Fees FINAL
http://www.njoag.gov/wp-content/uploads/2026/04/2026-0413_Letter-to-FTC-Rental-Fees_FINAL.pdf
2026 0413 Formatted Guidance for Housing Providers on Rental
https://www.njoag.gov/wp-content/uploads/2026/04/2026-0413_Formatted-Guidance-for-Housing-Providers-on-Rental-Application-Fees.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Attorney General Davenport Leads Bipartisan Multistate Call for Federal Action on Rental Housing Fee Abuses, Puts New Jersey Landlords on Notice of State’s Application Fee Cap"
"For Immediate Release: April 13, 2026"
"Office of The Attorney General"
"leading a bipartisan coalition of 27 attorneys general urging the Federal Trade Commission (FTC) to propose a rule"
"publishing guidance putting landlords on notice"
"New Jersey Landlords"
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