White House Demands Transparency From Rental Housing Platforms

The White House says three major housing platforms have agreed to provide more transparency to prospective renters.

Zillow, Apartments.com, and AffordableHousing.com will begin giving consumers the total of upfront cost of rental properties, President Joe Biden’s administration said Wednesday (July 19) as it announced its latest initiative to tackle “junk fees,” this time targeting rental housing.

“By providing the true costs of rent, people can make an informed decision about where to live and not be surprised by additional costs that push them over budget,” the administration said in its announcement.

For Zillow, that will mean including a cost of renting summary on its apartment listing, so renters will have a picture of their costs up front, including all monthly costs and one-time costs, such as security deposits and application fees.

Apartments.com, meanwhile, will add a calculator to its platform later this year to help renters determine up-front and recurring costs and fees.

And AffordableHousing.com has agreed to require owners to disclose all refundable and non-refundable fees and charges in their listings, and will add a “Trusted Owner” badge to steer renters to owners with a history of “adhering to best practices, including commitment to reasonable fee limits, no junk fees, and full fee disclosure,” the announcement said.

In addition to these measures, the White House is also promoting new Department of Housing and Urban Development (HUD) research that serves as a blueprint for a national effort to tackle rental housing junk fees, as well as state-level legislation to do the same.

These efforts are happening at a time when many renters feel challenged, according to PYMNTS research from earlier this year.

Less than 30% of the renters surveyed said they believed it was at least somewhat possible to afford a more expensive place, compared to 34% in 2021.

In fact, 35% of renters said they were thinking about moving to a less expensive property to cut costs, as rent prices rose 8.3% across 2022, slightly outpacing the average mortgage and property tax rate increase, which was 7.5%.

Earlier this month, the Biden administration proposed restrictions on junk fees in insurance programs that have allowed insurers to avoid some requirements of the Affordable Care Act.

One proposed change would limit short-term health insurance to three months, from the current limit of three years, while another requires sellers of income replacement “fixed indemnity” plans to be clear that they do not provide comprehensive coverage.