Lease clause & fee checker

01Problem

Invitation Homes advertised rent that omitted mandatory fees that “could total more than $1,700 yearly” and returned only 39.2% of deposit dollars (FTC, Sept. 24, 2024; $48 million). Greystar drip-priced valet trash, package, utility, and smart-home fees (FTC + Colorado, Dec. 2, 2025; $24 million). CFPB “Behind on Rent?” (Jan. 24, 2025): average late fee $84 in Nov. 2024, NSF ~$40–$42, late-fee incidence 14%. The FTC’s 16 C.F.R. Part 464 junk-fee rule does not cover long-term residential leases. State disclosure and cap statutes, plus FTC Act §5 cases, are the live tools.

02Intake

Draft lease, application, listing screenshot (advertised rent), and fee addenda
Every dollar demanded before move-in: app, holding, admin, move-in, pet, last month, deposit
Recurring add-ons: trash/valet, pest, amenity, tech/smart-home, RUBS/utility admin, parking, insurance waiver, payment processing
Late-fee and NSF clauses (grace days, %, flat $)
Auto-renew / notice-to-vacate window; early-termination / acceleration / concession-recapture
Entry, crime-free, one-strike, jury-waiver, one-sided attorney-fee
State and city; whether the listing agent is the landlord’s broker (NYC FARE); servicemember status (CA deposit cap)

03Playbook

01
Do not cite 16 C.F.R. Part 464 against an apartment. Effective 12 May 2025, it covers live-event tickets and short-term lodging, not “long-term or other rental housing that involves an ongoing landlord-tenant relationship” (FTC FAQ).
02
Use FTC Act §5. Invitation Homes (stipulated 27 Sep 2024): advertised rent omitted mandatory fees; $48 million; March 2026 refunds 444,131 checks totaling more than $47.2 million. Greystar (stipulated 12 Dec 2025): $24 million ($23M FTC + $1M Colorado); must disclose total monthly leasing price before any payment, including a nonrefundable application fee.
03
Federal status: ANPRM 91 FR 12325 (13 Mar 2026; comments 13 Apr 2026) is not a final rule. H.R. 4100 is not enacted. The CFPB did not ban application fees.
04
Compute all-in monthly = advertised rent + every non-optional recurring fee, and all-in move-in. Invitation Homes’ $1,700/year omitted fees = $141.67/month.
05
Apply state fee rules (these are not all bans). CA §1950.6: screening ≤ actual cost and ≤ $30+CPI since 1998 (industry 2026 $65.86 is CAA/private — demand the invoice). Security §1950.5: 1 month. NY RPL §238-a: no beginning-of-tenancy fee except credit/background at actual cost or $20, whichever less; late fee after 5 days, cap $50 or 5%. NYC FARE (Local Law 119 of 2024, eff. 11 Jun 2025): listing agent cannot charge the tenant a broker fee; 2d Cir. 13 Jul 2026 (REBNY v. City of New York, No. 25-1506) left it standing. CO HB25-1090 (eff. 1 Jan 2026): advertised rent is the total price; utility markup ≤ 2% or $10/month, not both. HB26-1013 (26 Mar 2026) adds RUBS with no extra markup. MN §504B.120 is disclosure, not a ban: “Total Monthly Payment” on page 1; treble damages. Late fee §504B.177 ≤ 8%. WA: screening at cost incurred; holding fee ≤ 25% of first month; no late fee if paid within 5 days. Seattle Ord. 127497 effective 1 Jul 2027. TX §92.019: late fee after two full days; presumed reasonable 12%/10%; illegal fee → $100 + 3×. MA §15B: only first, last, one-month security, and lock (agents covered 1 Aug 2025); no late penalty until 30 days overdue. CT PA 25-44 / §47a-7d (1 Oct 2025): advertised rent includes periodic and default (even opt-out) fees; liable for one month’s rent. NJ P.L. 2025 c.405 (eff. 1 May 2026): application fee ≤ $50. SF Ord. 219-26 signed 29 Oct 2026: total estimated monthly cost; operative date unverified. Chicago RLTO: late charge ≤ $10 on first $500 + 5% of excess ($1,800 → $75).
06
Hunt later-biting clauses. CA §1945.5: auto-renew in ≥8-point bold plus a bold recital above the signature, or voidable. NY GOL §5-905 applies to residential (“any real property or premises”): auto-renew inoperative unless the landlord gives 15–30 day written notice before the tenant’s quit deadline. Do not confuse with RPL §226-c. Break-fee “even if we re-rent in a week” → skill 11. Auto-deduct cleaning → still demand the invoice.
07
If card is the only way to pay, the processing fee is not optional (CO + Greystar). Demand free ACH.
08
HUD withdrew FHEO-2020-01 on 17 Sep 2025 and limited FHEO ESA charging recommendations to trained animals on 22 May 2026. The Fair Housing Act is unamended; pet rent on an assistance animal is still attackable.
09
Require a signed amendment for any mid-term fee. Bank escrow does not stop eviction unless a rent-into-court statute applies (e.g. CT §47a-14h).
10
Decision: do not apply or sign until listing total monthly price matches the lease, every pre-move-in dollar fits the state cap, the late fee fits, and auto-renew/ETF are lawful. Walk or redline.

04Checklists