New Jersey urges federal action on rental fees, warns landlords of $50 application cap

TRENTON, N.J. — New Jersey is leading a bipartisan, multistate effort calling for federal action on hidden rental fees while also warning landlords about a new state law capping application fees, officials announced.

Attorney General Jennifer Davenport said New Jersey is part of a coalition of 27 attorneys general urging the Federal Trade Commission to adopt rules targeting deceptive and unfair rental housing fees. At the same time, the state is issuing guidance ahead of a new law that limits rental application fees to $50 beginning May 1.

“For far too many New Jerseyans, housing is far too expensive. New Jersey has one of the nation’s most expensive rental markets, and when landlords hide the true cost of rent or pile on bogus fees, it becomes even harder for families to secure affordable housing and for honest landlords to compete,” said Attorney General Davenport. “We’re taking action to increase transparency and fairness for renters and make housing more affordable—both by calling for federal rulemaking through the Federal Trade Commission and by enforcing our own state law capping rental application fees. Renters deserve clear, honest information from the start without being overcharged, and that’s exactly what we’re committed to achieving.”

The coalition is asking the FTC to establish clear standards requiring disclosure of total rental costs, prohibit deceptive fee practices and ensure federal rules do not override state authority to regulate housing.

State officials said hidden fees can increase costs for renters and distort competition among landlords, particularly when large property owners operate across multiple states.

In addition to the federal push, the New Jersey Division of Consumer Affairs released guidance on the state’s rental application fee cap law. The law prohibits certain landlords from charging more than $50 for application-related fees, including administrative and screening costs.

“New Jersey renters are tired of being hit with excessive fees just to apply for the chance to rent a home. Today’s guidance makes clear that dishonest landlords who try to evade the fee cap or use application fees to extract excessive charges from tenants violate our laws and will face the consequences,” Davenport said.

Officials said landlords who charge fees for unavailable units, collect applications from unqualified renters or use excessive applications to generate revenue could also violate the state’s Consumer Fraud Act.

“We will begin enforcing the fee caps as soon as the law takes effect on May 1,” said Jeremy Hollander, acting director of the Division of Consumer Affairs. “We urge landlords and agents to review the guidance on the Division’s website and correct any practices that may violate the law before they face enforcement action.”

Residents who believe they have been charged improper fees are encouraged to file a complaint with the Division of Consumer Affairs.