Golden State Today

California officials have introduced new legislation aimed at protecting tenants from unfair rental practices involving excessive and unforeseen fees. Attorney General Rob Bonta and Assemblymember Matt Haney unveiled Assembly Bill 1248 (AB 1248), which seeks to regulate additional fees some landlords have been charging on top of rent, impacting Californian renters' ability to budget effectively.

The bill is a response to growing concerns over landlords charging separate fees for basic services traditionally included in rental agreements. These added costs, which have increased since the adoption of the Tenant Protection Act (TPA), are said to undermine tenant security and penalize landlords who choose not to implement such fees. According to proponents, these practices violate the spirit of the TPA, which set limits on rent increases to protect tenants.

“When landlords tack on fees on top of rent it makes it almost impossible for families to compare housing costs or plan for monthly expenses. As it stands, the scarcity and high cost of housing means California's 17 million renters spend a significant portion of their paychecks on rent, with an estimated 150,000 people at risk of eviction any given month,” said Attorney General Rob Bonta. He emphasized that AB 1248 aims to make housing costs transparent and predictable.

Assemblymember Matt Haney elaborated, stating, “Housing costs in California are already high, and added fees only make it harder for renters to budget and stay financially stable. These unfair and unpredictable costs are nothing more than a scam that drives up housing expenses and leaves tenants paying far more than they expected. AB 1248 ensures fairness by making sure the rent tenants agree to is the rent they actually pay. This bill will help protect Californians from misleading pricing practices and create a more honest and predictable rental market."

The practice of charging for services like pest control or using complex utility billing systems has led to steep monthly financial burdens on tenants. Robert Herrell, Executive Director of the Consumer Federation of California, emphasized the weight of these costs on renters: “Unfair fees in the rental housing market have exploded in recent years — far too many consumers feel the crushing burden of all these unpredictable fees on a monthly basis," he said.

Chairing the effort alongside Attorney General Bonta is Brian Augusta, Legislative Advocate from the California Rural Legal Assistance Foundation. He addressed the uncertainties low-income renters face due to fees, stating, “Low-income renters need certainty in their monthly rent payments. Most of these tenants are already severely rent-burdened and struggling to retain their housing. The exploitive practice of adding on fees after a lease has already been signed or charging for services that had previously been included in rent makes it even harder for people to stay housed.”

Enacted in 2019, the Tenant Protection Act led by Attorney General Bonta during his assembly tenure provides state-wide protections against unwarranted rent increases and evictions. AB 1248 proposes that landlords must disclose all rental costs upfront, and any tenant payment must first apply to rent before other costs, aimed at preventing debt accumulation for tenants. The text of the legislation can be accessed as part of its public record.