City of Austin Rental Fee Disclosure Ordinance Progresses

In October 2024, Austin City Council approved a resolution directing staff to draft an ordinance requiring all rental properties with five or more units to disclose all fees not included in rent at the time of application. The resolution also instructed staff to explore requiring that these fees be included in rental advertising. 

View the full resolution here.

Originally, staff were instructed to return with a draft ordinance by June 30, 2025, but the process was delayed to avoid potential conflicts with state legislation and ensure the ordinance would not be preempted. The City is now beginning the stakeholder engagement process. A proposed timeline for engagement and council action is included in the attached graphic, though it remains subject to change.

The City has also launched a Speak Up Austin page for community updates throughout the engagement process.

Visit the SpeakUp Austin Page

AAA’s Involvement to Date

At the October 2024 Council meeting, the agenda was dominated by the police contract discussion, which pushed the rental housing fee resolution late into the evening.

AAA’s Chief Executive Officer, Emily Blair, testified in opposition to the resolution, citing concerns about state law preemption and the potential burden on property owners. Despite these concerns, the Council approved the resolution on consent.

Background

The resolution was sponsored by Council Member Ryan Alter (District 5) and co-sponsored by Council Members Qadri, Fuentes, Vela, and Velasquez.

Council’s interest in this issue was influenced by:

• A January 2024 UT Austin School of Law Study (“Combatting Junk Fees in Texas Rental Housing”), which cited 13 properties across six management companies in five council districts, including one mobile home community.
• The Biden administration’s October 2023 announcement targeted hidden fees in industries such as event ticketing, auto sales, and rental housing.

These factors provided political momentum for the passage of the resolution.

Subsequently, the Federal Trade Commission's final ruling regarding "junk fees" excluded rental housing. 

Read: "Final ‘Junk Fees’ Rule Excludes Rental Housing"

Thanks to the tireless advocacy of the National Apartment Association (NAA) and its industry partners, the Federal Trade Commission (FTC) issued its final “junk fees” rule, Trade Regulation Rule on Unfair and Deceptive Fees, notably excluding the rental housing industry from additional regulation...[Read full article]

Resolution Requirements

The approved resolution directs staff to prepare an ordinance requiring landlords with five or more units to provide applicants a list of fees, including but not limited to:

• Application, reservation, and lease initiation fees

• Processing and administrative fees

• Utility connection fees

• Hold fees

• Mandatory recurring fees (e.g., pest control, trash collection, facilities, insurance)

• Optional or automatically included fees (e.g., cable/technology packages, waiver deposits, pet fees, payment type fees, parking)

Additionally, the resolution asks that the city explore the feasibility of landlords including fee disclosure in advertisements.

State & Federal Context

• In response to the Biden administration’s “Junk Fees” initiative, the FTC opened an investigation into rental housing fees. Ultimately, multifamily housing was excluded from the final rule. (Final ‘Junk Fees’ Rule Excludes Rental Housing, NAA)

• At the state level, multiple bills filed in 2025 (HB 4305, HB 1206 and SB 2302) proposed requiring fee disclosures at some point before lease signing. These bills did not pass. 

State and Local Laws Regulating Fee Disclosure

The City of Austin is not the first jurisdiction to enact a law requiring rental properties to display or disclose fees at some point before a tenant signs a lease. Other state and local laws include:

• Colorado (HB 25-2090, effective Jan. 1, 2026): Requires disclosure of “total price” including all mandatory fees in all advertising, offers, and displays.

• Massachusetts (940 CMR 38.00 & M.G.L. c. 186 §15B, effective Sept. 2, 2025): Requires disclosure of all mandatory fees in “total price,” optional fees must be clearly identified, and landlords cannot require tenants to pay broker fees.

• Minnesota (Minn. Stat § 504B.120, effective Jan. 1, 2024): Requires disclosure of base rent plus all nonoptional fees as the “total monthly payment” in advertising and on the first page of the lease.

• Virginia (HB 2430/HB 2219, effective July 1, 2025): Requires itemized fee list on the first page of leases

• New Mexico (SB 267, effective June 1, 2025): Requires itemized list of all fees and base rent in any published listing.

• Connecticut (SB 3, effective July 1, 2026): Requires disclosure of “total price” including all mandatory fees, charges, and costs in advertising.

• New York City (FARE Act, effective June 11, 2025): Prohibits landlord’s agents from charging tenant fees; all other fees must be disclosed clearly in ads and via signed tenant disclosure before lease.

• Fayetteville, AR (Ordinance 6883, effective Sept. 17, 2025): Requires disclosure of all fees before accepting an application fee or, if none, before providing the lease.

What's Next? 

The City of Austin will begin the stakeholder process and community engagement in the weeks to come. 

As this process unfolds, AAA will update members with opportunities to engage with the city and provide feedback.