The Regulatory Shift: The Junk Fee Crackdown

The era of bundling surprise charges into rental agreements is ending. Across the country, state legislatures are passing — or actively pursuing — laws that force landlords to show renters the full cost of housing upfront. For property operators who rely on transparent utility billing practices, this is vindication. For those still tacking on opaque fees, the window is closing fast.

This post is part of our Regulatory Shift series, tracking every bill that affects how operators bill utilities in 2026.

Here's a state-by-state breakdown of the junk fee legislation reshaping rental housing in 2026.

Colorado Sets the Standard with HB 25-1090

Colorado's HB 25-1090, effective January 1, 2026, is arguably the most comprehensive junk fee ban in the nation. The law requires businesses and landlords to advertise a single, all-inclusive price — no hidden fees, no separately listed mandatory charges. The total price must be displayed more prominently than any other pricing information.

For rental housing specifically, landlords cannot charge tenants more for utilities than what the utility provider bills for that unit. Any markup on third-party services like trash, internet, or pest control is capped at 2% or $10. Violations carry actual damages plus 18% interest compounded annually.

Status: Signed into law. Fully effective as of January 1, 2026.

Connecticut Follows with Public Act 25-44

Connecticut's Senate Bill 3, now Public Act 25-44, was signed by Governor Lamont on June 10, 2025. The rental-specific provisions took effect October 1, 2025, requiring landlords to include all periodic or recurring fees in any advertisement or communication of rent.

The law also extends price-gouging protections to rental transactions during declared emergencies. Violations carry civil penalties equal to one month's rent, plus potential attorney's fees and court costs. The Department of Housing must publish a standardized rental terms summary form for landlord use.

Status: Signed into law. Effective October 1, 2025.

California's Three-Pronged Attack on Rental Fees

California has three bills targeting rental fees, though with mixed results:

SB 681 — Introduced by Senator Wahab, this bill caps total fees at 5% of monthly rent, prohibits processing and convenience fees for rent payment, caps late fees at 2% (only after 7+ days overdue), and caps application screening fees at $30. Violations make landlords liable for the fee amount plus 5% interest compounded daily. The bill passed the Senate and moved to the Assembly, where it has stalled.

SB 381 — Originally the "Fair Rental Act of 2025" with similar provisions to SB 681, this bill was gutted and amended in January 2026 to address an entirely unrelated topic. The rental fee provisions are no longer active.

AB 1248 — Would have required landlords to present all costs as a single upfront rent amount and prohibited RUBS except for water/sewer services. Died on inactive status as of February 2, 2026.

Status: SB 681 is the surviving vehicle — active but stalled in the Assembly.

New York's Junk Fee Prevention Act Advances

New York Senate Bill S363A would establish the "New York Junk Fee Prevention Act," requiring businesses to display the total price of goods and services inclusive of all mandatory fees. The bill defines "mandatory fee" broadly — any fee the consumer must pay, cannot reasonably avoid, or would reasonably expect to be included in the purchase price.

The bill passed the Senate 45-14 and has advanced to third reading on the Senate floor calendar.

Status: Active. Passed Senate, currently on floor calendar.

Maryland and New Jersey Join the Push

Maryland HB 0080 requires landlords with four or more dwelling units to disclose all mandatory fees before a tenant signs a lease. Any fee not disclosed upfront is prohibited. Applies to leases signed or renewed on or after October 1, 2026, with tenant claims available starting February 1, 2027.

New Jersey A3403 would cap total recurring fee increases at 10% over any 12-month period. While landlords could still set initial fee amounts for new tenancies, existing tenants would be protected from fee escalation. The bill is pending in the Assembly Housing Committee.

Status: Both active and moving through their respective legislatures.

Virginia: Where Legislation Meets Litigation

Virginia is seeing pressure from both the statehouse and the courthouse. SB 349 would restrict pre-tenancy fees, reduce maximum security deposits to one month's rent, and require upfront disclosure of all allowable fees. It has been continued to the 2027 session.

HB 1409 goes further, prohibiting rental agreements from requiring tenants to pay for services landlords are legally obligated to provide — pest control, trash, common-area utilities, and more. It also bars landlords from marking up internet, cable, or other utility charges above actual cost. Also continued to 2027.

Meanwhile, Valencia Rios v. Belvedere NRDE, LLC — a federal class action in the Eastern District of Virginia — is challenging mandatory monthly pest control ($9) and community fees ($34) as violations of the Virginia Residential Landlord and Tenant Act. A proposed class settlement was filed in March 2026, and the outcome could reshape how mandatory fees are structured across the state.

Status: Legislative bills continued to 2027. Class action settlement pending.

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What This Means for Operators

The trend is unmistakable: fee transparency is becoming the law, not just a best practice. Operators who already bill utilities transparently and avoid junk fees are ahead of the curve. Those who rely on opaque fee structures need to act now.

Three things to do today:

• Audit your fee schedule. If you charge fees that aren't clearly disclosed in your lease and advertisements, you may already be noncompliant in states like Colorado and Connecticut.
• Restructure your pricing. Move toward all-inclusive rent advertising or ensure every fee is itemized, justified, and disclosed upfront.
• Invest in transparent billing tools. Utility management platforms that provide clear, itemized billing protect you from regulatory risk and build trust with residents.

The junk fee era is ending. The operators who embrace transparency now won't just stay compliant — they'll earn the trust that keeps units full.

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Sources: Colorado General Assembly (HB 25-1090), Connecticut General Assembly (Public Act 25-44), California Legislature (SB 681, SB 381, AB 1248), New York Senate (S363A), Maryland General Assembly (HB 0080), Virginia Legislature (SB 349, HB 1409), Otten Johnson (HB 25-1090 analysis), Mondaq (Valencia Rios case analysis).

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