WHAT'S IN A FEE?

Because of the economy, some federal lawmakers have taken it upon themselves to yet again attack the rental housing industry in an effort to provide affordable housing. Congressman Maxwell Frost (D-FL) introduced the End Junk Fees for Renters Act. His bill would end so-called junk fees by prohibiting application and screening fees. It also proposes ending late fees and having them apply as a credit for next month’s rent. In North Carolina, for every $1.00 of rent, only $0.07 is returned to the owner/operator as profit. With such small margins, any financial hit greatly affects rental property owners. This proposed legislation would ultimately have a negative impact on residents. Thankfully, the End Junk Fees for Renters Act is not likely to move through the House Financial Services Committee, making it unlikely to pass the U.S. House of Representatives.

Not only does the multi-family housing industry have to combat industry-crushing legislation, but there are also misconceptions around junk fees. According to the Cato Institute, pet rent also qualifies as a “junk fee”. Shockingly, the Biden-Harris Administration’s crackdown on junk fees doesn’t list pet rent. Because of the constant misconceptions around fees, some residents view all of them as unnecessary, pet rent being one of them.

Pet rent is appropriately only charged to residents who own pets. Pet rent is a monthly fee for pets ranging from $10-$60 per month. Unfortunately, one of the consequences of having pets living on site is when pet owners fail to scoop pet waste. It increases an already heavy workload for maintenance teams. “Our maintenance teams can’t turn apartments or complete work orders as quickly, which impacts the bottom line,” Dana Jiles, Regional Property Manager at Bell Partners, said. “It essentially rolls back to resident satisfaction when it’s taking longer for maintenance to complete work orders.” Not only is unscooped pet waste a burden, but it’s an environmental hazard. Unscooped pet waste contains unsafe pathogens and germs that have been linked to causing diseases such as Salmonella, E. coli, and ringworm. It also has severe environmental implications. If left unscooped, pet waste bacteria can remain for up to four years. If it’s not cleaned up, it probably washes up and in local lakes, rivers, and streams. Pet rent is one of several necessary fees that help create a safe environment for residents.