AG Leads 27-State Coalition Urging FTC Rental Fee Rule; Publishes $50 Application Fee Cap Guidance

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

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

by NJOAG Communications WC | Apr 13, 2026 | $50 cap on rental application fees | authority of states to regulate housing | bipartisan coalition of 27 attorneys general | bogus fees | clear | crack down on violations | disclosure of the total rental price | enforceable standards | Federal Trade Commission (“FTC”) | Guidance for Housing Providers on Rental Application Fees | guidance putting landlords on notice | housing affordability | housing affordability crisis | New Jersey Consumer Fraud Act (“CFA”) | Notice of Proposed Rulemaking | prohibit unfair or deceptive fee practices in rental housing transactions | rule that regulates hidden and deceptive rental fees | securing affordable housing | Affordability | Consumer Protection | Division of Consumer Affairs | Division of Law | Press Release |

For Immediate Release: April 13, 2026

Office of The Attorney General
– Jennifer Davenport, Attorney General
**Division of Consumer Affairs*
– Jeremy E. Hollander, Acting Director
Division of Law
– Michael C. Walters, Director*

For Further Information:

Media Inquiries-
Lisa Coryell
OAGpress@njoag.gov

Multistate Comment Letter | Guidance for Housing Providers on Rental Application Fees

TRENTON – Taking action to promote housing affordability for all New Jerseyans, Attorney General Jennifer Davenport is leading a bipartisan coalition of 27 attorneys general urging the Federal Trade Commission (FTC) to propose a rule that regulates hidden and deceptive rental fees. Attorney General Davenport is also publishing guidance putting landlords on notice, and vowing to crack down on violations, of New Jersey’s new law imposing a $50 cap on rental application fees charged to prospective tenants, which goes into effect on May 1, 2026.

“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.”

AG Davenport Leads Bipartisan Call for Federal Trade Commission Rulemaking

Attorney General Davenport is leading a bipartisan comment letter on behalf of 27 attorneys general urging the FTC to move forward with formal federal rulemaking addressing unfair and deceptive rental housing practices.

The coalition is urging the FTC to initiate a Notice of Proposed Rulemaking that would:

• Establish clear, enforceable standards requiring disclosure of the total rental price;
• Prohibit unfair or deceptive fee practices in rental housing transactions; and
• Complement, not preempt, the longstanding authority of states to regulate housing. In their comments, Attorney General Davenport and the bipartisan coalition of attorneys general emphasize that when landlords hide the cost of rent—including mandatory fees—renters face higher search costs and financial strain, and they may wind up trapped paying more than they can afford for housing. These hidden fees also distort competition by disadvantaging housing providers who are transparent about the price of rent.

As the letter explains, many states have already taken significant steps to curb unfair or deceptive rental fee practices—efforts that demonstrate broad bipartisan recognition of the need to combat such practices. But the letter explains that the problem cannot be addressed by state law alone and that federal action is needed, particularly where large corporate landlords and property managers operate across multiple jurisdictions.

Attorney General Davenport is leading the letter alongside the attorneys general of Colorado, Pennsylvania, and Tennessee.  Joining the letter are the attorneys general of Alaska, Arizona, California, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virgina, Washington, and Wisconsin.

New Guidance on New Jersey’s Rental Application Fee Cap

As New Jersey takes the lead in calling for federal action to address unfair and deceptive rental housing fee practices, Attorney General Davenport and the Division of Consumer Affairs (Division) are also publishing guidance today on New Jersey’s rental application fee cap law (Fee Cap), which goes into effect on May 1, 2026.

Rental application fees can quickly add up and create a barrier for prospective tenants trying to find housing. The Fee Cap law prohibits certain landlords from charging more than $50 for an application fee, or other similar fee, to apply to lease or sublease a residential dwelling.

The guidance issued today makes clear that when landlords use application fees to extract money from consumers by charging for units that are not actually available, collecting fees from applicants who landlords know cannot qualify, or taking excessive applications just to generate revenue, their conduct may also violate the New Jersey Consumer Fraud Act (CFA).

“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,” said Attorney General Davenport. “I am deeply committed to protecting New Jersey residents from fees and tactics that worsen our housing affordability crisis.”

The guidance clarifies that the $50 cap also applies to all other costs associated with the rental application, including administrative and screening fees, and highlights other application fee conduct that could violate the CFA’s prohibition on unconscionable, abusive, or deceptive practices.

“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.”

New Jerseyans are encouraged to share their experiences with rental application fees by filing a complaint with the Division at https://njconsumeraffairs.nj.gov/file-a-complaint/ and selecting “General Consumer Complaint” from the dropdown menu.

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