Attorney General Davenport urges federal action on rental fees and issues guidance on state cap

Jeremy Hollander, Acting Director of the Division of Consumer Affairs
Jeremy Hollander, Acting Director of the Division of Consumer Affairs
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Attorney General Jennifer Davenport announced on Apr. 13 that she is leading a bipartisan group of 27 attorneys general calling for the Federal Trade Commission to create rules regulating hidden and deceptive rental fees. Davenport also released new guidance for New Jersey landlords, emphasizing enforcement of a $50 cap on rental application fees starting May 1, 2026.

The move aims to address concerns about housing affordability in New Jersey, where high rents and additional undisclosed fees make it harder for residents to secure housing. “For far too many New Jerseyans, housing is far too expensive. New Jersey has one of the nation’s most expensive rental markets, and when landlords hide the true cost of rent or pile on bogus fees, it becomes even harder for families to secure affordable housing and for honest landlords to compete,” said Attorney General Davenport.

Davenport’s letter urges the FTC to establish clear standards requiring disclosure of total rental prices and prohibiting unfair fee practices in rentals. The coalition argues that while states have taken steps against deceptive practices, federal action is needed because large property managers often operate across state lines. The letter is co-led by attorneys general from Colorado, Pennsylvania, Tennessee, and joined by representatives from several other states.

The newly issued guidance clarifies that New Jersey’s law prohibits most landlords from charging more than $50 in application or similar fees per applicant. It warns that collecting excessive or unnecessary application fees may violate both the new law and existing consumer protection statutes such as the Consumer Fraud Act (CFA). “New Jersey renters are tired of being hit with excessive fees just to apply for the chance to rent a home. Today’s guidance makes clear that dishonest landlords who try to evade the fee cap or use application fees to extract excessive charges from tenants violate our laws and will face the consequences,” said Davenport.

Jeremy Hollander, Acting Director of the Division of Consumer Affairs, said: “We will begin enforcing the fee caps as soon as the law takes effect on May 1.” He encouraged landlords and agents to review their practices ahead of enforcement actions.

According to the official website, Matthew Platkin leads an office focused on protecting residents’ lives and property through legal support across all counties in New Jersey. The office influences public safety through law enforcement oversight under its statutory mandate statewide authority; its services include legal representation for state agencies, crime lab support, victim advocacy programs, regulation efforts, consumer protection initiatives—and functions broadly as a justice agency handling these matters throughout New Jersey.



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