City council looks to address pricing transparency for rental market

AUSTIN (KXAN) -- City council will take action on a resolution during its Thursday meeting that would provide more transparency on the cost of renting an apartment in Austin, and get rid of hidden fees that can surprise renters.

The resolution, introduced by Councilmember Ryan Alter, District 5, would direct the City Manager to create an ordinance that would require landlords to provide a list of all fees, including the cost of starting a rental application, associated with the monthly rent at the time of application.

Those fees include all mandatory monthly charges like pest control and trash collection services, for example. It also must show the fees for services that a tenant can opt-in to, like a pet or cable fee.

"Austin is a very expensive place to live, and so a high priority of mine has been how can we make it more affordable for people," Alter explained. "One of the ways we can do that is to be sure that people are not getting either nickle-and-dimed or having fees hidden from them when they're going to rent an apartment."

Junk fees

A study from the Housing Policy Clinic at the University of Texas published this year called for more transparency on rental pricing in the state. The report revealed complexes around Austin were charging residents junk fees. Some fees included boilerplate management fees, fire hydrant fees, and administrative fees.

The report broke down these junk fees into two categories: mandatory recurring fees and mandatory non-recurring fees. The recurring fees are services and amenities that tenants are not allowed to opt out of, such as valet trash.

Non-recurring fees are associated with the cost of applying to an apartment and can also be associated with tenant behavior. For example, an apartment complex charged an Austin man a $300 penalty for having a grill on their deck, according to the report.