California Attorney General Rob Bonta, Assemblymember Matt Haney, and a coalition of organizations have introduced Assembly Bill 1248 to address the issue of unfair rental fees affecting tenants. This legislation aims to tackle the practice where landlords charge separate fees, in addition to rent, that can amount to significant monthly costs for renters.
AB 1248 intends to prohibit landlords from unbundling housing services and charging additional fees for services that are typically included in rent. Such practices create financial instability for tenants and disadvantage honest landlords who do not impose these fees. The bill seeks to maintain consistent and predictable housing costs, benefitting both renters and the marketplace.
Bonta emphasized the difficulty families face with current housing costs, stating: “When landlords tack on fees on top of rent, it makes it almost impossible for families to compare housing costs or plan for monthly expenses." He noted the impact of added fees on the state's 17 million renters, who already spend a substantial portion of their incomes on rent.
Assemblymember Haney noted that fees exacerbate a challenging financial climate, describing them as deceptive practices that inflate housing expenses. He asserted, "AB 1248 ensures fairness by ensuring the rent tenants agree to is the rent they actually pay." The bill aims to bring clarity and stability to California's rental market.
Robert Herrell of the Consumer Federation of California supports the bill, highlighting the detrimental impact of these fees on consumers. "Unfair fees in the rental housing market have exploded in recent years," Herrell commented. He praised the proposed legislation for enhancing consumer protections.
Brian Augusta from the California Rural Legal Assistance Foundation highlighted the need for cost certainty for low-income renters, many of whom are already rent-burdened. "The exploitive practice of adding on fees after a lease has already been signed makes it even harder for people to stay housed," Augusta stated.
Since the Tenant Protection Act was enacted in 2019, some landlords have resorted to charging multiple separate fees, violating both the spirit and letter of the law, if combined fees surpass allowed rent increases. AB 1248 aims to counter these practices by mandating landlords to include all costs in the rent and ensuring rent payments are prioritized over any fees, thus preventing debt spirals for tenants.