Housing platforms including Zillow now display “junk fees” on rental listings to provide renters with a more accurate picture of what they can expect to pay, as the White House aims to help Americans relieve the burden of these fees.
Seattle-based Zillow announced Wednesday the release of “Cost of Renting Summary.” The tool provides users a breakdown of their expected monthly expenses such as rent, parking and pet fees, along with one-time fees like security deposits, application and administration fees. The company said it plans to roll out more tools for renters to customize fee estimates, including inputs like utilities and telecommunication services.
The release of the new price summary generator comes as the Biden Administration moves to crack down on so-called “junk fees,” or obscured charges tacked on top of the initial listed price. The White House has already targeted the travel industry and ticketing platforms this year.
“Hidden fees not only take money out of people’s pockets, they also make it more difficult to comparison shop,” the White House said in a statement Wednesday. “A prospective renter may choose one apartment over another thinking it is less expensive, only to learn that after fees and other add-ons the actual cost for their chosen apartment is much higher than they expected or can afford.”
Housing platform Apartments.com said it will launch a cost calculator for renters, while AffordableHousing.com will require owners to disclose all their fees in listings.
U.S. rental asking prices rose by $12 between May and June, reaching an average rent of $2,054, according to a recent report by Zillow. That marks a 4.1% increase from the year-ago period and continues a gradual decline in the annual growth rate since its peak of 16.2% in February 2022.
