The law governing rental housing fees is changing and owners need to be prepared. Effective May 1, 2026, residential rental application fees cannot exceed $50. The New Jersey Legislature enacted A4899, which prohibits a landlord and agents from charging more than $50 for an application fee to lease or sublease a residential property.On January 1st of each subsequent year, the $50 cap will be adjusted based on the Consumer Price Index. The Division of Consumer Affairs will publish the updated allowable amount each year. Penalties for violations are up to $500 for the first offense, up to $750 for a second offense, and up to $1,000 for each subsequent offense, and are collected in a summary proceeding under the Penalty Enforcement Law. Any amount wrongfully charged to an applicant will be paid back to the applicant from the penalty collected. The fee cap does not apply to one-family or two-family dwellings offered for rent or to New Jersey Real Estate Commission licensees, unless the licensee is also the landlord of the property.
PROPOSED FTC RULE MAKING
Similarly, on March 13, 2026, the Federal Trade Commission (FTC) issued an Advance Notice of Proposed Rulemaking to address unfair or deceptive fee practices relating to advertised rent and other fees and charges in the rental housing industry. The FTC is investigating hidden or misleading rental fees and considering whether to adopt rules that require clear, upfront disclosure of the total cost of renting. The FTC is concerned that there are fees disclosed late in the leasing process, that the advertised rent may exclude mandatory fees and charges for services consumers did not expect or cannot avoid, and that such fees could distort price comparisons among properties. The FTC is accepting comments until April 13, 2026. Click HERE for the FTC Rule.
These developments signal increased regulatory scrutiny of application fees, administrative fees, amenity fees, and other charges associated with renting residential property.
To help owners understand these changes and prepare for compliance, Goldstein LePore is hosting an in-depth seminar covering these and other important issues affecting owners.
SEMINAR DETAILS
Join Tracey Goldstein of Goldstein LePore LLC and Nicholas Kikis, Vice President, Legislative & Regulatory Affairs of the New Jersey Apartment Association at a free seminar in the auditorium at the law offices of Goldstein LePore:
Rental Fees, Reasonable Accommodations, and Considerations for Implementation of Artificial Intelligence-Based Tools.
April 22, 2026
1:00 PM – 2:00 PM Lunch
2:00 PM – 4:00 PM Presentation
To register, email seminar@goldsteinlepore.com.
This seminar examines key legal and operational issues surrounding application fees, amenity fees, and pet fees in rental housing. The program will discuss how these fees are commonly structured, recent regulatory developments, and best practices for compliance and transparency.
The session will also address reasonable accommodation requests under fair housing laws, including the treatment of assistance animals and the limits on charging pet-related fees in those situations.
Finally, the seminar will explore the proper use of artificial intelligence and other algorithmic tools, highlighting emerging legal scrutiny, potential antitrust concerns, avoiding algorithmic bias, and other practical considerations for housing providers using these technologies.
Attendance at this seminar is limited to Goldstein LePore clients. Space is limited and registration to attend is a must. To register, email seminar@goldsteinlepore.com. Be sure to supply your name, company email address, and telephone number. You must receive confirmation of registration from Goldstein LePore to attend.
This information is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable to all situations and should not be acted upon without specific legal advice based upon particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.