The Regulatory Shift: The Junk Fee Crackdown
Key Takeaways
- Colorado HB 25-1090 requires a single all-inclusive advertised rent price and bars utility charges above what the provider bills, beyond the 2%-or-$10 markup Colorado has allowed since 2023.
- Connecticut Public Act 25-44 requires most recurring fees to be included in the rent shown in rental ads (submetered utilities and utilities paid directly to the utility company are exempt, but RUBS charges are not), with violations triggering civil penalties of one month's rent, and the court may award attorney's fees.
- New York's Junk Fee Prevention Act (S363) would force total-price disclosure inclusive of all mandatory fees. It passed the Senate twice but stalled in the Assembly, so it isn't law.
- Virginia is seeing pressure from both the legislature and a federal class action challenging mandatory pest control and community fees in leases.
- Operators still relying on opaque fee structures need to audit schedules now — fee transparency is becoming the law, not a best practice.
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.
This post was first published in January, while most of these bills were still moving. The status of each bill below has been updated to show where it ended up. Several didn't become law.
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 a month, but not both. That cap isn't new: Colorado set it in 2023 (HB23-1095), and HB 25-1090 applies it to utility charges. If a landlord doesn't refund and stop within 14 days of a tenant's written demand, it's liable for actual damages plus 18% interest, compounded annually.
Status: Signed into law. Fully effective as of January 1, 2026.
Colorado operators: if you haven't already restructured your fee schedules to comply with HB 25-1090, you're operating outside the law. The statute applies to all rental advertisements and communications — including online listings.
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 would have capped non-rent fees at 5% of monthly rent and barred payment-processing and pet fees. A late-fee cap and parking-fee ban in early drafts were removed before it passed. The bill passed the Senate in June 2025, then stalled in the Assembly and missed the August 31, 2026 deadline, so its fee caps never became law.
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 (updated October 2026): None of the three became law. SB 681, the last one standing, stalled in the Assembly and missed the August 31, 2026 deadline.
New York's Junk Fee Prevention Act Stalls
New York Senate Bill S363 would have established 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 defined "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 in June 2025 and died in the Assembly. It passed the Senate again in May 2026, as S363B, by 40-20, and stalled in the Assembly's consumer affairs committee.
Status (updated October 2026): Not law. Passed the Senate twice; never passed the Assembly.
Maryland and New Jersey Join the Push
Maryland HB 0080 would have required landlords with four or more dwelling units to disclose all mandatory fees before a tenant signs a lease, and prohibited any fee not disclosed upfront. It passed the House 94-35 but died in the Senate when the session ended on April 13, 2026. None of it is law.
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 (updated October 2026): Maryland HB 0080 died in the Senate. New Jersey A3403 is still in committee.
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 — challenged 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 received preliminary court approval in April. The court granted final approval after an August 24, 2026 hearing and entered judgment on August 28, 2026.
Status (updated October 2026): Legislative bills continued to 2027. Class settlement granted final approval; judgment entered August 28, 2026.
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Talk to the TeamWhat 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.
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 (S363), Colorado General Assembly (HB23-1095), 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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Read moreWritten by
Clayton Erekson
Chief Executive Officer
Co-founder of Vitality. On a mission to redefine the future of utility management.