In Virginia, tenants, prospective tenants and landlords should know that the 2024 General Assembly introduced several bills to amend the Virginia Residential Landlord and Tenant Act (VRLTA). The following story is the first in a series addressing tenant-related bills in Virginia that were enacted on July 1, 2024. The story looks at HB 967, introduced by Del. Alfonso Lopez (D-Arlington), which sets specific requirements for landlords to disclose fees. Its identical companion bill is SB 405, introduced by Sen. Jennifer Boysko (D-Herndon). The deficit of affordable and available rental units for severely burdened households, especially those at or below 50 percent of Area Median Income (AMI) in Virginia’s Congressional Districts, the 8th, 10th, and 11th, which include all or parts of Fairfax County, Arlington County and Alexandria, cannot be understated as households compete to secure rental units. 

Nearly three months after HB 967 and SB 405 became law on July 1, 2024, approximately 40 Latinx residents, most non-English-speaking, gathered outdoors after staff at the property management office of their 100-unit-plus rental complex in Fairfax County had left for the day on the evening of Sept. 20. The residents had united to tackle shared issues. They waited for leaders of the New Virginia Majority to start the 7 p.m. meeting near the apartment community’s playground. Tenants had been surprised by the additional fees added, some for multiple years, to their residential statements. The fees increased their monthly housing statements beyond the agreed rent, straining and burdening their budgets. 

The Richmond-based nonprofit alliance/advocacy organization New Virginia Majority led the meeting and provided a Spanish-to-English translator. Local elected officials and others gathered to hear the residents’ concerns and possibly provide support for a positive change. 

The residents reported that despite their attempts to seek remediation by speaking with property management staff, they frequently found them unavailable to answer questions about added fees, costs and other concerns. Additionally, language barriers, the lack of Spanish-speaking staff and their leases in English exacerbated the tenants' frustrations and left their concerns, especially the numerous fees, including some fees penciled by onto their statements, unresolved.

Some fees are added for method of payment, $3 for an echeck; $61 for VISA; 3 percent of total rent for other credit cards. 

“To secure and maintain rental housing, renters today typically face a dizzying array of unavoidable fees,” the National Consumer Law Center said in “Too Damn High,” (March 2023). “These junk fees render safe and decent rental housing even more out of reach because renters must pay them on top of sky-high rents.”

Junk fees can include excessive late fees, utilities-related fees, administrative processing fees, insurance fees, check cashing fees, high-risk fees, month-to-month fees in addition to market rent if the lease is not renewed before it expires, new account fees, and more. Other fees include security deposit, pet fees, pet rent, pet move-out fees for deodorizing and shampooing, trash fees, pest control fees, cleaning fees, late fees, attorney fees, court costs, and more.

On May 9, 2024, Adam Rust of the Consumer Federation of America testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, stating that junk fees also "include fees at inflated prices, fees for services that a property manager should provide to provide a habitable space, and fees for services of little or no value."

At the Sept. 20 meeting, the rental residents shared their experiences of unexpected fees on their billing statements through the interpreters. Their fees included the so-called junk fees, which raise the price of their previously agreed-upon monthly charges. One resident’s total fees accumulated over $8,000, and another over $3,000. One resident recounted the accumulation of late fees, which she refused to pay, and her unsuccessful attempts to discuss concerns with management. It led to an eviction process in Fairfax County District Court. Other speakers told similar stories.

On Jan. 10, 2024, Del. Alfonso Lopez (D-Arlington) introduced the Virginia Residential Landlord and Tenant Act, also known as the fee disclosure statement HB 967. Sen. Jennifer Boysko (D-Herndon) introduced SB 405, identical to HB 967, at the same time. The bills became effective on July 1, 2024, two and a half months before the Sept. 20 tenant meeting. The bills require landlords “subject to the Virginia Residential Landlord and Tenant Act to include on the first page of a written rental agreement a description of any rent and fees to be charged to the tenant.” The new law requires that rental agreements also state: “No fee shall be collected unless it is listed below or incorporated into this agreement by way of a separate addendum after execution of this rental agreement.”

More examples of fees found by the Connection: forced placement administration fee, forced placement insurance, trash fee, and late fees amounting to 10 percent of the periodic rent for payments made one day late by the rental tenants through their Apartment Lease Contracts, Addendums, and Resident statements. The management company utilizes the National Apartment Association's monthly-dated Apartment Lease Contracts for Virginia.

Rental junk fees occur nationwide. On July 19, 2023, the Briefing Room at The White House drew attention to the pervasive issue of junk fees, “announcing a new front in [the] crackdown on junk fees: rental housing.” “From repeated rental application fees to surprise ‘convenience fees,’ millions of families incur burdensome costs in the rental application process and throughout the duration of their lease. These fees are often more than the actual cost of providing the service or are added onto rents to cover amenities that renters assume are included—or that they don’t even want,” said the release from The White Briefing Room.

“I believe that every renter should know the true cost of finding and staying in their home and not be hit with hidden costs and junk fees,” said HUD Secretary Marcia L. Fudge in a released statement by the Federal Trade Commission on Oct. 11, 2023.

Lopez and Boysko addressed what effect rental junk fees have on tenants and potential tenants, particularly those with extremely low income (0-30% of Area Median Income) and those who are severely cost-burdened (31%- 50% of Area Median Income) in light of the scarcity of affordable and available rental units in the Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro) region.

”Without a doubt, these fees harm all families, but especially those struggling to make ends meet,” said Del. Lopez. “They sign a lease thinking their monthly rent is one thing, and they budget accordingly. Then the rent comes due, and a whole bunch of fees get tacked on, and families are fighting to cover the gap,” he said. “That is why, during this past session, I introduced a bill with Sen. Jennifer Boysko that required all mandatory monthly fees to be listed at the beginning of leases. People need to know what they are getting into.”

Sen. Boysko answered the question inquiring about how junk fees affected her constituents. “My rental fee transparency legislation, SB 405 and Del. Lopez's identical counterpart require something quite simple — a listing upfront in every lease agreement of all the fees that could be charged,” she said. “I've heard from constituents who are upset because they've been charged for calling to have a stove repaired and other maintenance.”

“Our advocates at the Virginia Poverty Law Center combed through several lengthy lease agreements to create samples of what this fee listing would look like and found 22 items in one lease and 30 in another. Renters should know what they are signing up for — the total possible cost of the rental unit,” Boysko said. “Ideally, many of these fees should not be allowed. Landlords are required to keep units in repair. Unfortunately, the Governor vetoed Delegate Tran and Senator Ebbin's legislation to make that responsibility clearer. With rents as high as they are now, there should be no surprise charges," Boysko said.

The following organizations may be able to help resolve disputes, provide basic information, or give legal advice: 

* Fairfax County Department of Cable Communications and Consumer Affairs Online complaints: https://www.fairfaxcounty.gov/cableconsumer/csd/tenant-landlord Fairfax County maintains a tenant-landlord commission within this office. This office does not conduct telephone counseling but takes written complaints and produces and distributes a tenant and landlord booklet specific to Fairfax County at no cost to 

* The Virginia Fair Housing Office: 888 551-3247; FairHousing@dpor.virginia.gov; http://www.dpor.virginia.gov/fairhousing/ Contact the Virginia Fair Housing Office if you believe you have experienced discrimination in the rental of a home or a manufactured home lot.

* The Virginia Poverty Law Center provides information and assistance on landlord and tenant issues. 804-782-9430; http://www.vplc.org/housing-law/.

* Virginia Legal Aid Central Intake Line: 1-866-534-5243 www.VALegalAid.org Central Intake will direct callers to the appropriate local resources and can provide an attorney in certain circumstances. Self-help forms can be accessed at https://www.valegalaid.org/self-help-forms.

* Eviction Legal Helpline: 1-833-NoEvict Tenants in the process of or at risk of eviction can receive services from this hotline.