WeVote
Log In

Bill

Bill

SB 1964

RES RENTAL FEE FAIRNESS ACT

104th Regular Session Introduced by Cristina Castro

The law requires full upfront disclosure of all fees, bans tenant-facing fees by landlords’ agents and listings, and caps certain move-in, move-out, and late fees.

Rule 3-9(a) / Re-referred to Assignments
0
WeVote Research Nonpartisan
Bill Summary · SB 1964

SB 1964 — Rental Fee Transparency and Fairness Act

Status: Enacted (Signed by Governor 6/20/2025). Effective date: September 1, 2025. Applies to lease agreements entered after the effective date. Preempts home rule.

Purpose

To increase transparency and limit what fees landlords, their agents, and listing brokers may charge or require from tenants for residential rentals. The law aims to ensure tenants see all required fees up front, to restrict certain recurring or punitive tenant charges, and to cap certain one-time and late fees.

Key definitions (selected)

  • Agent: licensed real estate broker or salesperson acting in a fiduciary capacity.
  • Landlord's agent: listing agent or cooperating agent who finds/obtains a tenant (excludes dual agent).
  • Tenant's agent, listing, listing agent, fee, engage: defined in statute.

Major provisions

  • Prohibition on tenant fees by agents and listings

    • A landlord's agent may not impose or collect any fee from a tenant related to renting residential property.
    • Any real estate broker/salesperson who publishes a rental listing with the landlord’s permission may not impose or collect tenant-facing fees.
    • A landlord may not condition rental on the tenant engaging any agent (including dual agents).
    • Listings may not state or imply fees that would violate these rules; there is a rebuttable presumption that a published listing was authorized by the landlord.

  • Required disclosure

    • All fees (rent, security deposits, move-in/move-out fees, utility fees, maintenance, convenience/electronic payment fees, benefit package fees, etc.) must be explicitly listed on the first page of the lease with a short description of each.
    • If a fee is not listed on the lease first page, the tenant is not liable for it.
    • Rental listings must clearly disclose any fees included in the total rent and whether utilities are included.

  • Prohibited and limited lease charges

    • Late fees: leases may not impose a late fee for payments made within 7 days of due date (leases may provide a longer grace period). Maximum late fee: $25.
    • Prohibited tenant charges: administrative renewal fees, lease modification fees, fees for contacting the building owner/property manager, fees/penalties related to eviction notices or actions, and a fee charged for pet occupancy for the duration of the lease.

  • One-time fee limits

    • Landlords may only charge move-in fees, move-out fees, and security deposits as one-time fees.
    • If a security deposit is charged at tenancy start, the landlord may not also charge a move-in or move-out fee.
    • Security deposit cap: not to exceed the first full month’s rent (prorated if rent is not monthly).
    • Move-in or move-out fee cap: not to exceed 20% of the first full month’s rent (proration rules apply similarly).

Who is affected

  • Tenants: stronger upfront disclosure and protection from undisclosed/duplicative fees and certain recurring or punitive charges.
  • Landlords and property managers: limits on fees they may impose or pass to tenants and new disclosure obligations.
  • Real estate brokers/salespersons and listing platforms: prohibited from charging or collecting tenant-facing rental fees when acting as landlord’s agent or when publishing listings with landlord authorization; possible shift in brokerage compensation practices toward landlord-paid fees.

Enforcement and scope

  • The bill defines violations (e.g., landlord liable if agent violates the statute). The printed version does not include detailed penalty mechanisms in the excerpt provided. The provisions apply to leases entered after the effective date (9/1/2025).

Legislative timeline (selected)

  • Introduced: 2/6/2025 (Sen. Cristina Castro)
  • Passed both chambers with amendments in May 2025
  • Sent to Governor: 6/3/2025
  • Signed into law: 6/20/2025
  • Effective: 9/1/2025

Potential impacts (practical)

  • Increased transparency for prospective renters and reduced unexpected move-in costs.
  • Reduced revenue or administrative flexibility for landlords who previously relied on certain fees.
  • Brokers and listings may need to change compensation practices; agents likely must be compensated by landlords/owners rather than charging tenants.
  • Possible market adjustments (security deposits and fee structures) as parties reallocate costs or adjust rents.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.