For years, many Utah renters have shared the common but frustrating experience of finding the perfect apartment advertised for $1,500 a month only to discover (after paying for credit checks and application fees) that the actual monthly cost to rent the apartment is closer to $1,800 once mandatory media packages, valet trash and administrative fees are added on.
While the Utah State Legislature’s latest attempt to fix such practices failed to pass in the final hours of the 2026 session (Utah House Bill 29 - 2026 General Session), the federal government has stepped in to fill the void. On March 13, 2026, the Federal Trade Commission (FTC) officially initiated a rulemaking process titled the “Rule on Unfair or Deceptive Rental Housing Fee Practices.” This federal move signals a nationwide shift toward price transparency in the housing market.
Upfront and Honest Pricing
The primary aim of the FTC’s proposed rule is simple: to ensure that the base rent advertised to the public is an honest reflection of what a tenant will actually pay. Under current market conditions, many landlords use sneaky tactics to lure in consumers with a low “base rent,” only to reveal mandatory fees once the consumer is committed. The proposed rule aims to categorize these fees and mandate their disclosure upfront.
Key targets of the proposed rule include:
- Mandatory Technology Packages: Fees for high-speed internet or “smart home” features that tenants cannot opt out of.
- Administrative & Lifestyle Fees: Monthly charges for general upkeep or amenities that were historically included in the base rent.
- Processing Surcharges: Utility administrative fees that inflate the cost of basic services or convenience fees assessed for paying rent online.
Why the FTC is Acting Now
The FTC’s proposed rulemaking comes after the FTC pursued several high-profile enforcement actions against major corporate landlords. The FTC’s stance seems to be that legal action against specific landlords was insufficient to fully resolve the problem and that sweeping reform was necessary. Not only do hidden fees impact an individual renter’s budget, they also stifle competition, effectively rigging the market. When one landlord advertises an honest price and another landlord hides $300 in fees, the honest landlord is unfairly penalized in search results and market comparisons. By forcing all property managers and landlords to show their “all-in” prices, they will have to compete on value, rather than prevailing based on which landlord can devise the most creative fee structure.
Impact on Utah Landlords and Property Managers
Even though Utah’s “Unfair and Deceptive Pricing Amendments” stalled out this year, if the proposed federal rule succeeds, it will carry significantly more weight as it will apply to every residential lease in the country. Further, violations of the FTC rule won’t just result in a slap on the wrist. Instead, they could result in massive civil penalties and requirements that landlords provide full redress to affected tenants.
For landlords and property managers across the country, this means there is an immediate need for you to audit your marketing materials and lease agreements. If your software, websites, promotional materials or agreements display a price that does not include all mandatory add-ons, you may find yourselves in the crosshairs of federal oversight.
Your Voice Matters
The FTC is now accepting public comments to determine exactly which fees should be banned or strictly regulated. The public comment period will end on April 13, 2026. Whether you are a renter who wishes to share your story or a housing provider who wishes to voice concerns about how the proposed regulations might impact your operations, this is your chance to be heard.
The FTC’s proposed rule may resolve the need for greater transparency in the rental housing market. If successful, the “Price You See” could become the “Price You Pay.” Landlords, property managers and other housing industry stakeholders should prepare now. Parsons’ real estate attorneys are well-versed in the FTC’s proposed rule and its potential implications. Our attorneys can help you understand how these changes may impact your operations and provide strategic guidance on compliance, risk mitigation and next steps as the rulemaking process unfolds.
Mindy Kidd is a member of Parsons’ real estate and litigation practices. In her transactional practice, Mindy assists clients with their real estate needs, including purchasing, leasing and zoning. Her litigation practice focuses on real property litigation. Mindy is an excellent communicator, and she enjoys working with clients to help them achieve their desired outcomes. To contact Mindy, call 801.532.1234 or send an email to mkidd@parsonsbehle.com.