What will these new rules do?

Under the proposed ordinance, landlords with five or more rental units will be required to give applicants a complete list of fees when they apply for a unit. This includes:

• Application & move-in fees
  (examples: processing utility connection, administrative)
• Mandatory recurring month fees
  (examples: trash, amenities, pest control, renter insurance)
• Optional service fees
  (examples: pet fees, parking)

The rule will not apply to fees related to damage, lease violations, or other tenant-caused issues during the lease term.

Why is this important? 

• Full housing price transparency cannot be achieved if rental-related fees are not communicated to prospective tenants early and throughout the leasing process.

• Uncommunicated fees make it difficult for consumers to accurately compare leasing costs across different rental properties before signing a lease.

• Requiring all rental housing fees to be disclosed empowers households to make informed housing-related decisions.

• Not sharing additional fees early in the leasing process can harm tenants who have already invested time and money in selecting an apartment.
   

Related Background

• In October 2023, the Federal Trade Commission proposed a rule to prohibit hidden fees in business and rental housing operations.

• The Texas Legislature considered legislation addressing undisclosed rental housing fees during the 89th Regular Session in 2025, such as HB 4305.

• The Texas Legislature considered similar legislation prohibiting undisclosed fees for concert tickets during the 88th Regular Session in 2023, such as HB 1497 and HB 4084.

• Major rental housing platforms, including Zillow, Apartments.com, and Affordablehousing.com, have made commitments to summarize total costs upfront.

• The Texas Apartment Association's lease template includes a space for additional fees to be reported, but there is no requirement that fees be communicated to the residents ahead of signing a lease.

• Although the resolution was adopted in October of 2024, the timeline was pushed back to align with the 89th Legislative Session in Texas. During the regular session, multiple bills were filed that addressed transparency in rental housing fees, such as HB 4305, HB 1206, and SB 2302; however, none of these bills advanced. Staff opted to shift the project schedule out of an abundance of caution to avoid potential conflicts with pending legislation, ensure clarity on state regulatory frameworks, and allow sufficient time for legal review following the session.

Staff Contact
Chase Bryan, Austin Housing
[email protected]
512-974-1484