Tenants in residential property management often face excessive and unnecessary “junk fees” that can add significant costs to their housing expenses. From resident benefits packages to administrative charges and amenity costs, these extra fees can quickly accumulate, making an affordable rental unattainable for many renters.

This article will explore the various types of junk fees commonly encountered in property management, such as late penalties and other charges. By understanding what constitutes legitimate fees and what qualifies as an unnecessary expense, tenants can better navigate the rental process and avoid being overcharged by unscrupulous property management companies.

Definition of Junk Fees

Junk fees, also known as hidden or unnecessary fees, are charges imposed by property management companies or landlords that are not directly related to the cost of providing housing or essential services. These fees can take various forms, such as application fees, administrative fees, amenity fees, and late payment penalties. The primary concern with junk fees is that they can significantly increase the overall cost of renting, making it challenging for tenants to accurately compare and budget for housing expenses.

Types of Junk Fees

Resident Benefits Package: A Resident Benefit Package (RBP) is an additional charge to a tenant (as much as $40 monthly) that is included with a new lease which provides residents with added services. These services vary from company to company, but they can include such things as a 24-hour emergency maintenance hotline, an online tenant portal, multiple rental payment options, home buying assistance and other items meant to improve residents’ quality of life. At WJD, we believe that providing our tenants with exceptional service and optimal benefits throughout their tenancy is a top priority. But unlike our competitors, our RBP is yours to take advantage of FREE OF CHARGE.
Application Fees: These fees, often ranging from $50 to $100 or more, are charged to prospective tenants when they submit an application for a rental property. While a reasonable fee may cover the cost of credit and background checks, excessive application fees can be considered junk fees.
Administrative Fees: Property management companies may charge administrative fees for tasks such as processing rent payments, handling maintenance requests, or renewing leases. These fees are typically not directly related to the services provided and can be considered junk fees.
Amenity Fees: Some property managers charge additional fees for amenities like fitness centers, pools, or clubhouses, even if these amenities are already included in the advertised rent.
Late Payment Penalties: While late payment fees are common and can be justified to incentivize timely rent payments, excessive or unreasonable late fees may be considered junk fees.
Miscellaneous Fees: Other types of junk fees may include fees for trash collection, package handling, valet trash services, pest control, and even arbitrary charges like a “January fee” with no clear justification.

Impact of Junk Fees

Junk fees can have several adverse effects on tenants:

They make it difficult to accurately compare the total cost of renting between different properties, as the advertised rent may not reflect the true cost.
They can significantly increase the overall cost of renting, making affordable housing even more challenging to find.
They can be deceptive, as tenants may not be aware of these additional fees until after signing a lease or moving in.

To address the issue of junk fees, the Biden-Harris Administration has proposed initiatives to increase transparency and limit unnecessary charges in the rental housing market. This includes commitments from major rental platforms to provide upfront information on total rental costs, including fees, and potential legislative actions to prohibit or limit certain types of junk fees.

Application Fees

Rental application fees are common charges imposed by landlords and property management companies on prospective tenants. These fees are meant to cover the costs associated with tenant screening processes, such as credit checks, background checks, and other administrative tasks. However, it is crucial to understand the regulations surrounding application fees to avoid being overcharged or subjected to unnecessary expenses.

Typical Application Fee Ranges

While regulations vary across states, rental application fees typically range from $30 to $75 per person. These fees are intended to cover the costs associated with tenant screening reports and other administrative tasks related to the application process.

Fee Range	Description
$30 – $50	Common range for basic credit and background checks
$50 – $75	Higher fees may include additional screening services or administrative costs
$75+	Fees exceeding $75 may be considered excessive and should be scrutinized

It is important to note that rental application fees are generally non-refundable, even if the applicant is not approved for the rental unit.

Tenants should be aware of their state’s regulations regarding rental application fees and exercise caution when dealing with landlords or property management companies that charge excessive or unjustified fees. By understanding their rights and the legitimate purposes of these fees, tenants can better navigate the rental process and avoid unnecessary expenses.

Administrative Fees

Administrative fees are another common type of junk fee charged by property management companies. These fees are often imposed for routine tasks and services that should typically be covered by the rent or included in the property management company’s standard operating costs.

Common Administrative Fees

Rent Processing Fees: Some property managers charge tenants a monthly or annual fee for processing rent payments, even when payments are made electronically or through automatic deductions. These fees can range from $5 to $25 or more per month.
Lease Renewal Fees: Tenants may be required to pay a fee, often ranging from $50 to $200, for renewing their lease agreement, despite the renewal process being a standard part of property management operations.
Maintenance Request Fees: Property managers may charge tenants a fee, typically ranging from $25 to $75, for submitting maintenance requests or work orders, even though addressing maintenance issues is a fundamental responsibility of the property manager.
Notice Fees: Tenants can be charged fees for receiving notices from the property management company, such as lease violation notices or rent increase notifications, which should be considered a routine part of the property manager’s duties.
Account Statement Fees: Some property managers charge tenants a fee, often around $10 to $25, for requesting a copy of their account statement or payment history, which should be readily available upon request.

Justification and Regulations

While some administrative fees may be justified to cover specific costs associated with providing additional services or amenities, many of these fees are considered excessive and unnecessary by consumer advocates and regulatory bodies.

Several states and local jurisdictions have implemented regulations to limit or prohibit certain types of administrative fees in rental housing. For example, some states have capped the maximum amount that can be charged for lease renewal fees or have prohibited fees for routine tasks like processing rent payments or submitting maintenance requests.

It is essential for tenants to familiarize themselves with the applicable laws and regulations in their area regarding administrative fees in property management. They should also carefully review their lease agreements and any additional fee schedules provided by the property management company to understand the potential administrative fees they may be required to pay.

Amenity Fees

Amenity fees are additional charges paid by tenants to access various amenities and services offered within an apartment building or gated community. These fees can be charged monthly, annually, or as a one-time upfront cost.

Common Amenities with Associated Fees

Landlords and property management companies often impose amenity fees for the following facilities and services:

Gym/Fitness Center
Swimming Pool
Package Delivery System
Bike Storage
In-unit Washer/Dryer
Rooftop Terrace
Smart Locks/Keyless Entry
Outdoor Kitchen/Grills
Dog Park

Typical Fee Ranges

The cost of amenity fees can vary significantly depending on the type and number of amenities offered. Here are some typical fee ranges:

Fee Type	Range
General Amenity Fee	$200 – $500 (one-time) or $30 per month
Specific Amenity Fees	$5 – $20 per month

For example, a tenant may be charged a general amenity fee of $30 per month, plus additional fees for using the gym ($10/month), package management ($5/month), and storage ($15/month).

Evaluating Amenity Fees

When considering a rental property, tenants should carefully evaluate the value and desirability of the offered amenities in relation to the associated fees. Some key considerations include:

Personal Needs: Assess whether the available amenities align with your lifestyle and preferences. If you don’t plan to use certain amenities, paying for them may not be worthwhile.
Comparative Analysis: Compare the amenity fees and offerings with other properties in the area to ensure you’re getting a fair deal.
Budget Impact: Determine if the combined amenity fees fit within your overall apartment budget, considering the base rent and other expenses.
Convenience and Value: Amenities like package management, keyless entry, and on-site fitness centers can provide significant convenience and value, potentially justifying the associated fees.

Landlords and property managers should also carefully evaluate the demand for specific amenities among their target tenant demographics and consider the impact of amenity fees on their net operating income (NOI) and occupancy rates.

Conclusion

Navigating the multitude of fees associated with rental properties can be a daunting task for tenants. This article has explored the various types of junk fees commonly imposed by property management companies, such as application fees, administrative charges, amenity fees, and late payment penalties. By understanding what constitutes legitimate fees and what qualifies as an unnecessary expense, tenants can better protect themselves from being overcharged and make informed decisions when seeking rental housing.

Ultimately, the goal of this article is to empower tenants with the knowledge and resources needed to navigate the complex landscape of property management fees. By staying informed about state and local regulations, carefully reviewing lease agreements, and evaluating the true value of offered amenities, renters can minimize the impact of junk fees on their housing expenses. If you are ready to hire a professional property manager, feel free to take advantage of our exclusive FREE Rental Market Analysis. Finally, don’t forget to connect with us on social media! Follow us on Facebook, Twitter, LinkedIn, Instagram, and Pinterest for tips, ideas, and updates.

FAQs

1. What are hidden junk fees?
Hidden junk fees refer to mandatory charges that are not clearly disclosed to consumers upfront. Typically, consumers are enticed with an attractively low initial price, only to find out at the point of payment that this price was misleading and additional undisclosed fees apply.

2. Can you give an example of a junk fee?
Junk fees are unexpected charges added to the cost of goods or services, which are not disclosed until the payment stage. Examples include overdraft fees on bank accounts, service fees on concert ticket purchases, resort fees added at hotels, or convenience charges for pre-selecting seats on an airline.

3. What does the junk fee bill entail?
The junk fee bill aims to regulate the fees imposed by certain businesses, such as those offering short-term lodging, ticketing services, internet, mobile services, or video programming. It also mandates that air carriers seat young children next to an accompanying adult during flights to ensure safety and convenience.

Navigating Junk Fees in Property Management: A Tenant’s Guide to Unnecessary Charges