When one thinks of so-called "junk fees," the first things that come to mind are those small charges added to cell service and utility bills, as well a the myriad of fees charged these days by airlines.
But according to a new report from the University of Texas School of Law, fees are driving up he cost of renting a house or apartment in the Lone Star State as well.
The reports found that landlords often advertise units at a reasonable rent, but then tack on mandatory monthly fees for services like "valet" or even ordinary trash collection, cable TV and Internet service, pest control and processing rent or utility payments. Facility fees are becoming more common, too, for having a laundry room on the premises, for example, or a pool..
Then there are recurring fees for unspecified "administrative" services, which could be anything or nothing.
These types of services were once commonly included in the stated rent. And the fees are often unrelated to the landlord's actual costs.
There are one-time fees as well. Application fees, for example. Processing fees and fees for moving in. Fees for notices and penalty fees for violating rules the tenant might not even have been aware of.
The report says these fees can mean a big increase over stated rent and are often unrelated to the landlord's actual costs.
According to North Texas public radio station KERA, a recent Harvard University study found more than half of all tenants in Texas already pay more for rent than they can reasonably afford. All those fees don't help.
Landlords deserve to cover costs and make a return on their investment. But renters deserve transparent listings. Property owners and managers shouldn't advertise what looks like a reasonable rent to draw in prospective tenants and then hit them with an assortment of mandatory fees on the backend.
The Federal Trade Commission is considering a rule that would prohibit "misrepresenting the total costs of goods and services by omitting mandatory fees from advertised prices and misrepresenting the nature and purpose of fees."
Landlords who have embraced this fee revenue would do well to take heed. If they don't become more transparent on their own, the government might just force their hand.