Loading...
HomeMy WebLinkAboutOrdinance 6883113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6883 File Number: 2025-231 AN ORDINANCE TO ENACT § 120.03 DISCLOSURE OF RENTAL FEES AND COSTS FOR LEASED RESIDENTIAL PROPERTIES IN THE CITY OF FAYETTEVILLE WHEREAS, potential tenants often make housing decisions based on advertised rent prices but may not be fully aware of additional fees and costs that could significantly affect their ability to afford and maintain rental housing; and WHEREAS, clear and accurate disclosure of all fees and costs associated with rental properties allows prospective tenants to make informed, well -considered decisions; and WHEREAS, providing a clear breakdown of costs ensures that tenants are better equipped to budget effectively and maintain housing stability; and WHEREAS, by requiring the disclosure of all rental fees and costs before a landlord requires any payment for a rental application review or background checks should prevent a prospective tenant from wasting money on an application fee in order to rent housing that the tenant cannot afford. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts § 120.03 Disclosure of Rental Fees and Costs as follows: "120.03 Disclosure of Residential Rental Fees and Costs (A) Required Disclosures. Landlords or property owners of residential properties leased for periods of thirty days or more shall include a clear and comprehensive disclosure of all known and fixed fees and costs that are likely be charged to the tenant by the landlord or property owner prior to any required payment for rental application review or background check or prior to furnishing the lease if the landlord has not earlier required payment for rental application review or background checks. This includes, but is not limited to: 1. Application and Background Check Fees: Fees landlords require to process rental applications or perform background checks, if any. Explanation whether rental application fee is for the housing unit or assessed against all adult tenants is required. 2. Rent: The base monthly rent amount. 3. Security Deposit: The amount required as a security deposit. 4. Maintenance Fees: Costs for regular monthly or periodic maintenance that may be charged to the tenant. 5. Utility Costs: The landlord must specify who is responsible for payment of costs associated with water, electricity, gas, internet, and trash services but is not required to list an amount. Page 1 Ordinance: 6883 File Number: 2025-231 6. Pet Fees: Any fees, costs, or deposits associated with keeping pets on the property. 7. Parking Fees: Charges for parking spaces or permits, if applicable. 8. Late Fees: The fees imposed for late rent payments including any grace periods, charges schedules, or escalating fee policies. 9. Administrative, Leasing, or Miscellaneous Fees: Any other fixed and known fees imposed on a tenant related to the administration of the lease or for other purposes not listed above. (B) Clear and Prominent Disclosure of All Rental Costs Required. 1. All fixed and known fees and costs must be disclosed clearly and in a manner that is easily accessible, visible, and understandable to potential tenants. Fees must be itemized and presented separately from the base rent amount and shall be accompanied by a description of the service(s) associated with each fee. 2. In online listings, this disclosure shall be presented on the same page as the listing details. Landlords and rental management companies shall not be responsible for electronic media outside of their control, including any syndicated listing platforms. 3. If there is a leasing office onsite, this information shall be made available to potential tenants upon request. 4. A copy of the list shall be attached to all paper rental applications. 5. In any lease agreement or contract, this disclosure shall be included in a separate section within the body of the contract or attached as an exhibit or appendix to the contract. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance will not go into effect until three months after its passage and approval to provide sufficient time for all affected landlords and rental management companies to be ready to comply with the disclosure requirements. PASSED and APPROVED on June 17, 2025 Approved: Molly Rawn, Mayor Attest: ti FgYE7TEV!ELE:­ �•. �'(y9RhANgPS Jrp: Kara Paxton, City Clerk Treasurer This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas. Amount Paid: $ 320.72 Page 2 CITY OF FAYETTEVILLE ARKANSAS MEETING OF JUNE 17, 2025 TO: Mayor Rawn and City Council THRU: FROM: Council Member Sarah Moore CITY COUNCIL MEMO 2025-231 SUBJECT: DISCLOSURE OF RENTAL FEES AND COSTS (ORDINANCE): RECOMMENDATION: Council Member Moore is sponsoring the Truth in Leasing Ordinance that would require the disclosure of fees and costs associated with residential leases. BACKGROUND: DISCUSSION: BUDGET/STAFF IMPACT: ATTACHMENTS: 3. Agenda Packet - Truth in Leasing Ordinance - Council Member Moore, 4. Disclosure of Costs, 5. Initial Ordinance Proposed, 6. City Attorney Memo - Proposed Amendment of Disclosure of Rental Fees and Costs, 7. FYAC - Disclosure of Rental Fees Letter of Support, 8. Rental Fee Disclosure Form Option 1, 9. Rental Fee Disclosure Form Option 2, 10. Rental Fee Disclosure Ordinance - Amendments from EconDev Focus Group Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Legislation Text File #: 2025-231 AN ORDINANCE TO ENACT § 120.03 DISCLOSURE OF RENTAL FEES AND COSTS FOR LEASED RESIDENTIAL PROPERTIES IN THE CITY OF FAYETTEVILLE WHEREAS, potential tenants often make housing decisions based on advertised rent prices but may not be fully aware of additional fees and costs that could significantly affect their ability to afford and maintain rental housing; and WHEREAS, clear and accurate disclosure of all fees and costs associated with rental properties allows prospective tenants to make informed, well -considered decisions; and WHEREAS, providing a clear breakdown of costs ensures that tenants are better equipped to budget effectively and maintain housing stability; and WHEREAS, by requiring the disclosure of all rental fees and costs before a landlord requires any payment for a rental application review or background checks should prevent a prospective tenant from wasting money on an application fee in order to rent housing that the tenant cannot afford. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts § 120.03 Disclosure of Rental Fees and Costs as follows: "120.03 Disclosure of Residential Rental Fees and Costs (A) Required Disclosures. Landlords or property owners of residential properties leased for periods of thirty days or more shall include a clear and comprehensive disclosure of all known and fixed fees and costs that are likely be charged to the tenant by the landlord or property owner prior to any required payment for rental application review or background check or prior to furnishing the lease if the landlord has not earlier required payment for rental application review or background checks. This includes, but is not limited to: 1. Application and Background Check Fees: Fees landlords require to process rental applications or perform background checks, if any. Explanation whether rental application fee is for the housing unit or assessed against all adult tenants is required. 2. Rent: The base monthly rent amount. 3. Security Deposit: The amount required as a security deposit. Page 1 Ordinance: 6883 File Number: 2025-231 4. Maintenance Fees: Costs for regular monthly or periodic maintenance that may be charged to the tenant. 5. Utility Costs: The landlord must specify who is responsible for payment of costs associated with water, electricity, gas, internet, and trash services but is not required to list an amount. 6. Pet Fees: Any fees, costs, or deposits associated with keeping pets on the property. 7. Parking Fees: Charges for parking spaces or permits, if applicable. 8. Late Fees: The fees imposed for late rent payments including any grace periods, charges schedules, or escalating fee policies. 9. Administrative, Leasing, or Miscellaneous Fees: Any other fixed and known fees imposed on a tenant related to the administration of the lease or for other purposes not listed above. (B) Clear and Prominent Disclosure of All Rental Costs Required. 1. All fixed and known fees and costs must be disclosed clearly and in a manner that is easily accessible, visible, and understandable to potential tenants. Fees must be itemized and presented separately from the base rent amount and shall be accompanied by a description of the service(s) associated with each fee. 2. In online listings, this disclosure shall be presented on the same page as the listing details. Landlords and rental management companies shall not be responsible for electronic media outside of their control, including any syndicated listing platforms. 3. If there is a leasing office onsite, this information shall be made available to potential tenants upon request. 4. A copy of the list shall be attached to all paper rental applications. 5. In any lease agreement or contract, this disclosure shall be included in a separate section within the body of the contract or attached as an exhibit or appendix to the contract. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance will not go into effect until three months after its passage and approval to provide sufficient time for all affected landlords and rental management companies to be ready to comply with the disclosure requirements. Page 2 CivicClerk No.: 2025-231 AGENDA REQUEST FORM FOR: Council Meeting of March 4, 2025 FROM: Council Member Sarah Moore ORDINANCE OR RESOLUTION TITLE AND SUBJECT: AN ORDINANCE TO ENACT § 120.03 TRUTH IN LEASING; DISCLOSURE OF RENTAL FEES AND COSTS FOR LEASED RESIDENTIAL PROPERTIES IN THE CITY OF FAYETTEVILLE APPROVED FOR AGENDA: Approved by email Sarah Moore City Council Member Blake Penningto Senior Assistant City Attorney Approved as to form 2/18/2025 Date 2/18/2025 Date AN ORDINANCE TO ENACT § 120.03 TRUTH IN LEASING; DISCLOSURE OF RENTAL FEES AND COSTS FOR LEASED RESIDENTIAL PROPERTIES IN THE CITY OF FAYETTEVILLE WHEREAS, potential tenants often make housing decisions based on advertised rent prices but may not be fully aware of additional, often hidden, fees and costs that could significantly affect their ability to afford and maintain rental housing and can lead to confusion, financial hardship, and the potential for deceptive practices that harm Fayetteville residents; and WHEREAS, clear and accurate disclosure of all fees and costs associated with rental properties allows prospective tenants to make informed, well -considered decisions and prevents vulnerable tenants, including low-income individuals and families, from being burdened by unexpected financial obligations; and WHEREAS, providing a clear breakdown of costs ensures that tenants are better equipped to budget effectively and maintain housing stability, which can lead to lower tenant turnover rates; and WHEREAS, by requiring the disclosure of all rental fees and costs in advertisements and listings, the city will support fair housing practices and enhance consumer protection for current and future tenants. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts § 120.03 — Truth in Leasing; Disclosure of Rental Fees and Costs as follows: "120.03 - Truth in Leasing; Disclosure of Residential Rental Fees and Costs (A) Required Disclosures. Landlords or property owners of residential properties shall include a clear and comprehensive disclosure of all fees and costs that are or could be charged to the tenant by the landlord or property owner in any contract, advertisement or listing, whether physical or digital. This includes, but is not limited to: (a) Rent: The base monthly rent amount. (b) Security Deposit: The amount required as a security deposit. (c) Application and Background Check Fees: Fees required to process rental applications or perform background checks. (d) Maintenance Fees: Costs for maintenance or repairs that may be charged to the tenant. (e) Utility Costs: Charges for utilities such as water, electricity, gas, internet, or trash collection the tenant pays to the landlord. This does not include costs associated with utilities in the name of the tenant. (f) Pet Fees: Any fees, costs, or deposits associated with keeping pets on the property. (g) Parking Fees: Charges for parking spaces or permits, if applicable. (h) Late Fees: The fees imposed for late rent payments including any grace periods, charges schedules, or escalating fee policies. (i) Administrative, Leasing, or Miscellaneous Fees: Any other fees imposed on a tenant related to the administration of the lease or for other purposes not listed above. (B) Clear and Prominent Disclosure Required. All fees and costs must be disclosed clearly and in a manner that is easily accessible, visible, and understandable to potential tenants. Fees must be itemized and presented separately from the base rent amount and shall be accompanied by a description of the service(s) associated with each fee. In online listings, this disclosure shall be presented on the same page as the listing details, and in print advertisements, it should be included in the body of the advertisement or in a clearly visible section. If there is a leasing office onsite, this information shall be displayed along with any required business licenses or permits. A copy of the list shall be attached to all paper applications. In any lease agreement or contract, this disclosure shall be included in a separate section within the body of the contract or attached as an exhibit or appendix to the contract. Received by Cit Council from Council Member Moore befo ncil Meeting Started Disclosure of Rental Fees & Costs Ordinance For Leased Residential Properties in the City of Fayetteville March 4, 2025 The Concern Expressed in a Year of Fayetteville Community Housing Conversations • Burdensome cost to renters each time that they had to move, often yearly given increasing rents. Working with limited means, trying to limit amount spent out to possible rentals. During discussions the following were identified: o Application and background check fees were charged at a number of properties adding up to $100s up to $1,000 out of pocket at each move. o Applicants applied to rentals not always knowing all of the ongoing costs and spending application & background fees and possibly admin fees before fully understanding monthly or any other possible costs which could mean they could not afford the rental ongoing o Unknown often what the criteria are to be considered and approved. This information may or not be able to inquired and received of this information prior to spending funds and attempting to rent the property. ii ■ CTY -E � FAYITTEVILLE IW ARKANSAS What is out there now- Rental Listings l.ko-VU E FAQS APPLYON STADIUM not guarantee a space. Fayetteville Next, we will complete a background screening and send you the Housing Agreement to reserve your spot when mutually signed. The Administrative Fee, if already paid, will be refunded if a Housing Agreement is not approved. DEPOSITS AND FEES Application Fee (one-time) $40 Administrative Fee (annual) $200 Security Deposit (one-time) $500 WAIVED Pay .... —, select units Utilities Water. Sewer, Trws (with us) Electric (Swepco) Valet Trash- $36 Cable/Internet- $63 CAM (Common Area I Maintenance) Fee- IBR: $32 2BR: $35 9�-PiS 3BR: $37 Waiver Renters Insurance-��]] $14 �I-1 rs' insurance, a letter com Rogers *Rates and discounts are subject to change - Restrictions tire proof of income ofa month worth of paystubs and ifyou choose to from a certified 100,000 Personal Liability Renter's Insi 1603 W Walnut St • Rogers, AR 72756.4' • friscoonwalnut@amcllc.net I www.friscoapartn *Online tool search results utilized by Fayetteville residents, Councilmember Moore, & City Attorney Office ciTv oc :. FAYETTEVILLE �' ARKANSAS What is out there now- Rental Listings Back to search 2 Zillow Home value Cost calculator Owner options Home details Neighborhood What's special - Real Property Management First Choice- NWA is excited to offer this fantastic two -bedroom, two -bathroom home in a prime Fayetteville location! just minutes from the vibrant Fayetteville downtown square, the University of Arkansas, and Dickson Street, you'll enjoy the best of both convenience and comfort. This charming home blends modern and traditional styles, featuring a stove/oven, dishwasher, refrigerator, disposal for your ease. Stay cozy year-round with central heat and air, and take advantage of the added bonus of a detached garage! Fill out an application now to live in this prime location!! (Please note that this property is NOT furnished) Rent: $2045.00 per month Deposit: $1545.00 (one time fee) Leasing Fee: $500.00 (one time fee) Liability to Landlord Insurance Required: $15.00 per month (you can provide you own insurance to avoid this fee) Resident Benefit Package: $40.00 per month Monthly Pet Rent: $50.00 per pet. Pet fee of $250 per animal 2 Animal Maximum *Breed restrictions apply. App fee: $20 Background check: $20 (All occupants 18 and older must apply separately. Background checks include residential, credit, and criminal Background check: $20 (All occupants 18 and older must apply separately. Background checks include residential, credit, and criminal history. Income requirement of 3 times the amount of rent. Application fees are non-refundable.) (Each future occupant, 18 or older, must submit individual applications. Background checks include residential, credit, and criminal history. Income requirement is 3 times the amount of rent. Applications are available online via our website. Application fees are non-refundable. RPM does not accept payment in the form of cash or any online payment platform not directly linked to an RPM First Choice website and will never ask for payment via those platforms.) ADDITIONAL INFO/FEES: Resident Benefit Package: $40.00 fee includes utility concierge service, on -time rent payment credit reporting, late pay forgiveness, home buyers assistance, & more! Insurance Requirement: Liability to Landlord Insurance in the amount of $100,000 is mandatory. You will be charged $15.00 per month. If you provide your own policy you will not be charged this fee. Pet Screening: RPM First Choice uses a platform called Pet Screening to complete the screening and approval process for any pets that will be living on the property. Individuals without pets must complete the online affidavit, while pet/animal owners should gather current vaccination records, veterinarian information and snapshots of their pet/animal. You will find the link to complete your online profile in the application process. Household pets will be charged a fee of $50 for the first pet, $35 for the additional pet which will not only complete the screening process, but also create a digital passport for your animal for your personal use. (THIS IS NOT THE MONTHLY PET FEE - THESE FEES ARE STRICTLY FOR YOUR PETS SCREENING & APPROVAL PROCESS - CALL THE OFFICE FOR INITIAL AND MONTHLY PET FEES) n Hide Fayetteville *Online tool search results utilized by Fayetteville residents, Councilmember Moore, & City Attorney Office c� FAYETTEVlrvoPILLE ARKANSAS What is out there now- Rental Listings Fayetteville Leverett Garden Apartments Springaale PAYMENT OPTIONS ��-d I 2 3 4 HILL PLACE The Following Fees will be incurred for those Wobbe Lane Apartments meeting these specifications: t. (479) 717-233s CREATE ACCOUNT Primary Applicants/Renters - $400 Deposit, $30 Apply Online Create a new account. Already have an Application Fee, $15 Online Payment Processing account? Sign in Before You Begin: Fee First name* Create Account ** Only the $400 Deposit is refundable. Application Please be prepared to pay the application fee as outlined in the property listing. In addition to this rental application, you will also be required to provide a copy of a valid form of and processing fees are non-refundable. p 9 Create an Account to Begin Last name* identification and proof of income. Secondary Applicants/Renters-$30 Application To complete this rental application, you must be prepared to provide 3 years of residential To start your application, create an account. We will history as well as contact information for your rental references. You will also be asked to Fee, $5 Online Payment Processing Fee be able to save your progress and enable you to provide information on your monthly income, and please note that most properties require that come back anytime to check on the status of your Email* applicant combined gross income is at least three (3) times the monthly rent amount. ** All Secondary Applicant/Renter fees are non- application. Each resident over the age of 18 must submit a separate rental application. refundable. For any questions, please call . Application Fee: $35.00 Phone* Guarantors - $30 Application Fee, $5 Online Legal First Na Payment Processing Fee Questions? We're here for you. You are applying to rent: How did you hear about us2 680ERandall WobbeLn 17.202 ** All Guarantor fees are non-refundable. Last Name * I Please select an option below .. Springdale, AR 72764 Any refund of the $400 security deposit will be issued via check the first Friday after a 10 day Are you working with a leasing agent? business period and after the funds have cleared Engage Management's bank account. n n n *Online tool search results utilized by Fayetteville residents, Councilmember Moore, & City Attorney Office �� CITY OF —. FAYETTEVILLE ARKANS \-�—� AS What type of Fees or Costs are Being Seen n Arkansas o Utility fees o Valet Trash o Cable/Internet o Maintenance Fee o Waiver of Renters Insurance o Ad m i n Fee o Leasing Fee o Pet Fee o Pet Rent o Pet Screening o Online Payment Processing Fee o Guarantor Application Fee o Resident Benefit Package Nationally • Identified through 2023 Federal Committee reviewing 'junk fees", over 20 seen across country • From NPR article (Dec 23 poll) o "I think Americans also feel they're not getting a fair price anymore. Everywhere they turn, they're being gouged, overcharged, companies are skimming, just adding a little extra. In some cases, companies are taking away, charging them the same price but offering them a little less product," Owens said. o Polling shows both Democrats and Republicans support tackling junk fees, and a December poll from the left -leaning Data for Progress found that 72% of Republicans surveyed support the Junk Fee Prevention Act, a bill that would limit excessive and unnecessary fees, including many that the Biden administration has tried to tackle, like concert and airline fees. 'Federal junk fees details from this source: httns//www.nor.ora/2024/03/06/1235955054/biden-funk-fees-state-of-the-union CITY � FAYETTEVILLE ARKANSAS Goal of Disclosure of Rental Fees & Cost Ordinance ror rcenters • Reduce out of pocket costs when applying for possible rentals given the expression from Fayetteville community of overly burdensome nature of these fees. In discussion leading up to the CAP ordinance, there were many comments made to "just ask" the properties for these costs up front. This ordinance is aimed to give greater clarity of all in and total costs for a rental BEFORE a family places money towards an application/background check fee. For Property Owners/Manager • Create as easy a disclosure process as possible while giving consumers additional information with the overall goal that the relationship between both parties will be on stronger ground with full understanding of finances needed to be in positive standing at a rental long term. CITY OF �� FAYETTEVILLE ARKANSAS What Ordinance Provides "120.03 Disclosure of Residential Rental Fees and Costs (A) Required Disclosures. Landlords or property owners of residential properties shall include a clear and comprehensive disclosure of all fees and costs that are likely be charged to the tenant by the landlord or property owner prior to any required payment for rental application review or background check or prior to furnishing the lease if the landlord has not earlier required payment for rental application review or background checks. This includes, but is not limited to: Application and Background Check Fees: Fees landlords require to process rental applications or perform background checks, if any. Explanation whether rental application fee is for the housing unit or assessed against all adult tenants is required. Rent: The base monthly rent amount. Security Deposit: The amount required as a security deposit. Maintenance Fees: Costs for regular monthly or periodic maintenance that may be charged to the tenant. Utility Costs: Charges for utilities such as water, electricity, gas, internet, or trash collection the tenant pays to the landlord. This does not include costs associated with utilities in the name of the tenant. Pet Fees: Any fees, costs, or deposits associated with keeping pets on the property. Parking Fees: Charges for parking spaces or permits, if applicable. Late Fees: The fees imposed for late rent payments including any grace periods, charges schedules, or escalating fee policies. Administrative, Leasing, or Miscellaneous Fees: Any other fees imposed on a tenant related to the administration of the lease or for other purposes not listed above. (A) Clear and Prominent Disclosure of All Rental Costs are Required. 1. All fees and costs must be disclosed clearly and in a manner that is easily accessible, visible, and understandable to potential tenants. Fees must be itemized and presented separately from the base rent amount and shall be accompanied by a description of the service(s) associated with each fee. 2. In online listings, this disclosure shall be presented on the same page as the listing details. 3. In print advertisements, this disclosure should be included in the body of the advertisement or in a clearly visible section. 4. If there is a leasing office onsite, this information shall be displayed along with any required business licenses or permits. 5. A copy of the list shall be attached to all paper rental applications. 6. In any lease agreement or contract, this disclosure shall be included in a separate section within the body of the contract or attached as an exhibit or appendix to the contract. Enforcement- Intent would be for the same mechanism as the CAP ordinance following penalty section 10.99 general penalty with other code enforcement CITY� FAYE- TTEVILLE ARKANSAS City of Fayetteville Strategic Goal Alignment • City Plan 2024: We will create opportunities for attainable housing • Economic Vitality Plan: • Community Development, Goal 2 Neighborhood Center Advancement Plan, Page 48 ■ Reduce housing cost burdens for residents making under 120% of Fayetteville's Area Median Income (AM0 • Economic Mobility ■ Table 1 pg 12. 1a Support targeted policies and programs that build financial and social capital for Black, Latinx, and Asian residents;women, and low income individuals and families Y OF M CITFAYETTEVILLE ARKANSAS It took us 6 to 9 months on a waitlist to gel an affordable apartment, we want to buy but it feels almost impossible. I J Groundwork Ku 1 rr� � . II.YrY11n klmlHw.1 Mtani This financial strain limits their ability to afford other basic needs and increases the risk of displacement as housing costs continue to rise. 5.1 1 J Groundwork World.... Housing for Northwest Ark.n— City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Legislation Text File #: 2025-231 TRUTH IN LEASING (ORDINANCE): AN ORDINANCE TO ENACT § 120.03 TRUTH IN LEASING; DISCLOSURE OF RENTAL FEES AND COSTS FOR LEASED RESIDENTIAL PROPERTIES IN THE CITY OF FAYETTEVILLE WHEREAS, potential tenants often make housing decisions based on advertised rent prices but may not be fully aware of additional, often hidden, fees and costs that could significantly affect their ability to afford and maintain rental housing and can lead to confusion, financial hardship, and the potential for deceptive practices that harm Fayetteville residents; and WHEREAS, clear and accurate disclosure of all fees and costs associated with rental properties allows prospective tenants to make informed, well -considered decisions and prevents vulnerable tenants, including low-income individuals and families, from being burdened by unexpected financial obligations; and WHEREAS, providing a clear breakdown of costs ensures that tenants are better equipped to budget effectively and maintain housing stability, which can lead to lower tenant turnover rates; and WHEREAS, by requiring the disclosure of all rental fees and costs in advertisements and listings, the city will support fair housing practices and enhance consumer protection for current and future tenants. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts § 120.03 — Truth in Leasing; Disclosure of Rental Fees and Costs as follows: "120.03 - Truth in Leasing; Disclosure of Residential Rental Fees and Costs (A) Required Disclosures. Landlords or property owners of residential properties shall include a clear and comprehensive disclosure of all fees and costs that are or could be charged to the tenant by the landlord or property owner in any contract, advertisement or listing, whether physical or digital. This includes, but is not limited to: 1. Rent: The base monthly rent amount. 2. Security Deposit: The amount required as a security deposit. 3. Application and Background Check Fees: Fees required to process rental applications or perform Page 1 Ordinance: File Number: 2025-231 background checks. 4. Maintenance Fees: Costs for maintenance or repairs that may be charged to the tenant. 5. Utility Costs: Charges for utilities such as water, electricity, gas, internet, or trash collection the tenant pays to the landlord. This does not include costs associated with utilities in the name of the tenant. 6. Pet Fees: Any fees, costs, or deposits associated with keeping pets on the property. 7. Parking Fees: Charges for parking spaces or permits, if applicable. 8. Late Fees: The fees imposed for late rent payments including any grace periods, charges schedules, or escalating fee policies. 9. Administrative, Leasing, or Miscellaneous Fees: Any other fees imposed on a tenant related to the administration of the lease or for other purposes not listed above. (B) Clear and Prominent Disclosure Required. All fees and costs must be disclosed clearly and in a manner that is easily accessible, visible, and understandable to potential tenants. Fees must be itemized and presented separately from the base rent amount and shall be accompanied by a description of the service(s) associated with each fee. In online listings, this disclosure shall be presented on the same page as the listing details, and in print advertisements, it should be included in the body of the advertisement or in a clearly visible section. If there is a leasing office onsite, this information shall be displayed along with any required business licenses or permits. A copy of the list shall be attached to all paper applications. In any lease agreement or contract, this disclosure shall be included in a separate section within the body of the contract or attached as an exhibit or appendix to the contract." Page 2 Received from City Attorney Kit Williams on 03/11/2025 at 2:48p.m. 4 DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY Kit Williams City Attorney Blake Pennington TO: Mayor Senior Assistant City Attorney City Council Hannah Hungate Kara Paxton, City Clerk Treasurer Assistant City Attorney Stacy Barnes CC: Keith Macedo, Chief of Staff Paralegal FROM: Kit Williams, City Attorney �, J DATE: March 11, 2025 RE: Proposed Amendment of Disclosure of Rental Fees and Costs to require posting on landlord's or residential rental management company's web page all rental and recurring costs for a residential rental Council Member Berna has reported that some landlords or residential rental management companies have informed him that some large internet rental advertising companies may not allow all these potential rental costs/ management fees on their web sites. However, some rental managers and landlords may have the ability to list all these costs on their own web site along with the other details of the possible residential rental. Therefore, Council Member Berna asked me to draft and amend to § 120.03 (13)(2) as follows: "2. Landlords and rental management companies shall present all the detailed disclosures of potential fees and costs shown on (A) on their websites on the same page as the rental listing's other details. Landlords and rental management companies shall not be responsible for electronic media outside of their control." I believe Council Member Berna may discuss this slight change of the Agenda Session. 1 Received From: Chanci Fondren 03/17/2025 Good evening Mayor and City Council, my name is Mia Alansari and I live in Ward 3 and I am the Environmental Action and Sustainability Chair for the Fayetteville Youth Advisory Council. If you have lived in Fayetteville, you have seen rental and housing prices have increased substantially. As representatives of the youth, we represent the ages of those who will soon be entering the housing market, so we feel this issue pertains strongly to us. We feel that the City Council agenda item Disclosure of Rental Fees and Costs would be very beneficial as these hidden fees could greatly impact us on our housing search while finding something affordable and accessible. Hidden fees plague the housing market and make it inaccessible for renters in our community. As we go into the working world and learn how to budget, hidden fees could completely derail our budget and disincentivize us to stay in the City of Fayetteville. At the March 10, 2025 Fayetteville Youth Advisory Council meeting, our council voted to forward a recommendation of approval for this agenda item to you all. Thank you on the behalf of the Fayetteville Youth Advisory Council for your time and have a good evening. Received from Council Member Berna during the 06/10/2025 City Council Agenda Session Meeting. CITY OF FAYETTEVILLE, ARKANSAS RENTAL FEE DISCLOSURE FORM Rental Address: Lessor Representative: Phone Number: Email: SCHEDULE OF FEES A. FEES COLLECTED BEFORE LEASING 1. Screening Fees: Non-refundable applicant screening and/or background check fee of $ 2. Other: Fee for of $ 3. Other: Fee for of $ B. FEES OVER AND ABOVE BASE RENT 1. Late Payment Fee: Late payment in fee in the amount of $ 2. Returned Check/Payment Fee: Returned/failed payment fee in the amount of $ 3. Pet Fees: Recurring pet charge in the amount of $ a. Additional description of pet fee rates 4. Parking Fees: Parking and/or parking permit fees in the amount of $ 5. Maintenance Fees: Costs for periodic maintenance fees in the amount of $ a. One-time amount b. Periodic frequency of fee 6. Pest Control Fees: Costs for periodic pest control imposed on the tenant in the amount of $ a. Periodic frequency of fee 7. Cleaning Fees: Fees imposed on the tenant for cleaning and returning the property to pre -lease condition in the amount of $ 8. Other: Fee for of $ F — — -- UTILITY Type Provider — — RESPONSIBLE PARTY (check one) Utility Deposit Monthly Utility Bill NIA Tenant Lessor Tenant Lessor Electnc Gas Intemet/Cable ras ! ecyc ing Water/Sewer Cnhee er Other .a . Other Lessor Representative Prospective Tenant Received from Council Member Berna during the 06/10/2025 City Council Agenda Session Meeting. CITY OF FAYETTEVILLE, ARKANSAS RENTAL FEE DISCLOSURE FORM Rental Address: Lessor Representative: Phone Number: Screening Fee Move -in Fee Security Deposit Pet Deposit Pet Fee Parking Fee Maintenance Fee Pest Control Fee Cleaning Fee Administrative Fee Other Fees Late Payment Fee Returned Payment Fee Parking Violation Fee Early Termination Fee Other Fees Electric Gas Internet/Cable Trash/Recycling Water/Sewer Stormwater Fee Other Email: SCHEDULE OF FEES Fees Prior to Lease Signing Category Description Amount Details Applicant Non-refundable $ N/A screening/background check Non-refundable $ N/A Refundable $ N/A Refundable $ N/A Potential Fees Above Base Rent Recurring $ N/A Parking/permit $ N/A Periodic $ N/A Periodic $ N/A $ N/A Lease administration Miscellaneous Miscellaneous Utility Responsibilities $ N/A $ N/A $ N/A $ N/A $ N/A $ N/A $ N/A Deposit ❑ Tenant ❑ Lessor ❑ N/A ❑ Tenant ❑ Lessor ❑ N/A ❑ Tenant ❑ Lessor ❑ N/A ❑ Tenant ❑ Lessor ❑ N/A ❑ Tenant ❑ Lessor ❑ N/A ❑ Tenant ❑ Lessor ❑ N/A ❑ Tenant ❑ Lessor ❑ N/A Lessor Representative Prospective Tenant Variable based on pet number, size, breed, history Variable rates One-time or periodic (frequency: N/A) Frequency: N/A For returning property to pre -lease condition To be specified Returned/failed payment Improper vehicle use Lease termination To be specified Monthly Bill ❑ Tenant ❑ Lessor ❑ Tenant ❑ Lessor ❑ Tenant ❑ Lessor ❑ Tenant ❑ Lessor ❑ Tenant ❑ Lessor ❑ Tenant ❑ Lessor ❑ Tenant ❑ Lessor Received from Senior Assistant City Attorney Blake Pennington 06-12-2025 at 12:28 P' ` LL DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY TO: CC: FROM: DATE: RE: Mayor Rawn City Council City Clerk -Treasurer Kara Paxton Blake Pennington, Senior Assistant City June 12, 2025 Kit Williams City Attorney Blake Pennington Senior Assistant City Attorney Hannah Hungate Assistant City Attorney Stacy Barnes Attorne Paralegal Revisions to Rental Fee Disclosure Ordinance On May 27, the Economic Development Department issued a summary of the discussions and recommendations that came out of the rental fee disclosure focus group made up of both renters and property owners/managers. At the request of Council Member Moore, our office has prepared a revised draft ordinance that incorporates the three primary recommendations, which include: 1. Clarifying that the ordinance applies only to mid-term and long-term rentals by specifying that it impacts residential properties leased for thirty days or more. 2. Clarifying that the ordinance applies only to known and fixed fees and costs. The provision on utility costs has been changed to require that a property owner/manager only disclose who is responsible for payment of those bills. 3. Excluding print advertisements and syndicated listing platforms from the disclosure requirement. Attached are clean and strikethrough versions of the revised draft if the City Council wishes to amend the ordinance language currently under consideration. AN ORDINANCE TO ENACT § 120.03 DISCLOSURE OF RENTAL FEES AND COSTS FOR LEASED RESIDENTIAL PROPERTIES IN THE CITY OF FAYETTEVILLE WHEREAS, potential tenants often make housing decisions based on advertised rent prices but may not be fully aware of additional fees and costs that could significantly affect their ability to afford and maintain rental housing; and WHEREAS, clear and accurate disclosure of all fees and costs associated with rental properties allows prospective tenants to make informed, well -considered decisions; and WHEREAS, providing a clear breakdown of costs ensures that tenants are better equipped to budget effectively and maintain housing stability; and WHEREAS, by requiring the disclosure of all rental fees and costs before a landlord requires any payment for a rental application review or background checks should prevent a prospective tenant from wasting money on an application fee in order to rent housing that the tenant cannot afford. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts § 120.03 Disclosure of Rental Fees and Costs as follows: "120.03 Disclosure of Residential Rental Fees and Costs (A)Required Disclosures. Landlords or property owners of residential properties leased for periods of thirty days or more shall include a clear and comprehensive disclosure of all known and fixed fees and costs that are likely be charged to the tenant by the landlord or property owner prior to any required payment for rental application review or background check or prior to furnishing the lease if the landlord has not earlier required payment for rental application review or background checks. This includes, but is not limited to: 1. Application and Background Check Fees: Fees landlords require to process rental applications or perform background checks, if any. Explanation whether rental application fee is for the housing unit or assessed against all adult tenants is required. 2. Rent: The base monthly rent amount. 3. Security Deposit: The amount required as a security deposit. 4. Maintenance Fees: Costs for regular monthly or periodic maintenance that may be charged to the tenant. 5. Utility Costs: The landlord must specify who is responsible for payment of costs associated with water, electricity, gas, internet, and trash services but is not required to list an amount. 6. Pet Fees: Any fees, costs, or deposits associated with keeping pets on the property. 7. Parking Fees: Charges for parking spaces or permits, if applicable. 8. Late Fees: The fees imposed for late rent payments including any grace periods, charges schedules, or escalating fee policies. 9. Administrative, Leasing, or Miscellaneous Fees: Any other fixed and known fees imposed on a tenant related to the administration of the lease or for other purposes not listed above. (B) Clear and Prominent Disclosure of All Rental Costs Required. 1. All fixed and known fees and costs must be disclosed clearly and in a manner that is easily accessible, visible, and understandable to potential tenants. Fees must be itemized and presented separately from the base rent amount and shall be accompanied by a description of the service(s) associated with each fee. 2. In online listings, this disclosure shall be presented on the same page as the listing details. Landlords and rental management companies shall not be responsible for electronic media outside of their control, including any syndicated listing platforms. 3. If there is a leasing office onsite, this information shall be made available to potential tenants upon request.. 4. A copy of the list shall be attached to all paper rental applications. 5. In any lease agreement or contract, this disclosure shall be included in a separate section within the body of the contract or attached as an exhibit or appendix to the contract. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance will not go into effect until three months after its passage and approval to provide sufficient time for all affected landlords and rental management companies to be ready to comply with the disclosure requirements. Strikethrough Version AN ORDINANCE TO ENACT § 120.03 DISCLOSURE OF RENTAL FEES AND COSTS FOR LEASED RESIDENTIAL PROPERTIES IN THE CITY OF FAYETTEVILLE WHEREAS, potential tenants often make housing decisions based on advertised rent prices but may not be fully aware of additional fees and costs that could significantly affect their ability to afford and maintain rental housing; and WHEREAS, clear and accurate disclosure of all fees and costs associated with rental properties allows prospective tenants to make informed, well -considered decisions; and WHEREAS, providing a clear breakdown of costs ensures that tenants are better equipped to budget effectively and maintain housing stability; and WHEREAS, by requiring the disclosure of all rental fees and costs before a landlord requires any payment for a rental application review or background checks should prevent a prospective tenant from wasting money on an application fee in order to rent housing that the tenant cannot afford. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts § 120.03 Disclosure of Rental Fees and Costs as follows: "120.03 Disclosure of Residential Rental Fees and Costs (A)Required Disclosures. Landlords or property owners of residential properties leased for periods of thirty days or more shall include a clear and comprehensive disclosure of all known and fixed fees and costs that are likely be charged to the tenant by the landlord or property owner prior to any required payment for rental application review or background check or prior to furnishing the lease if the landlord has not earlier required payment for rental application review or background checks. This includes, but is not limited to: 1. Application and Background Check Fees: Fees landlords require to process rental applications or perform background checks, if any. Explanation whether rental application fee is for the housing unit or assessed against all adult tenants is required. 2. Rent: The base monthly rent amount. 3. Security Deposit: The amount required as a security deposit. 4. Maintenance Fees: Costs for regular monthly or periodic maintenance that may be charged to the tenant. 5. Utility Costs: , inteffiet, eelleetion the tena*t pays to the landlord. This does not inelude eests asseeiatedwit „Ailifies it the name of the tenan The landlord must specify who is responsible for payment of costs associated with water, electricity, gas, intemet, and trash services but is not required to list an amount. 6. Pet Fees: Any fees, costs, or deposits associated with keeping pets on the property. 7. Parking Fees: Charges for parking spaces or permits, if applicable. 8. Late Fees: The fees imposed for late rent payments including any grace periods, charges schedules, or escalating fee policies. 9. Administrative, Leasing, or Miscellaneous Fees: Any other fixed and known fees imposed on a tenant related to the administration of the lease or for other purposes not listed above. (B) Clear and Prominent Disclosure of All Rental Costs ar,-Required. 1. All fixed and known fees and costs must be disclosed clearly and in a manner that is easily accessible, visible, and understandable to potential tenants. Fees must be itemized and presented separately from the base rent amount and shall be accompanied by a description of the service(s) associated with each fee. 2. In online listings, this disclosure shall be presented on the same page as the listing details. Landlords and rental management companies shall not be responsible for electronic media outside of their control, including any syndicated listing platforms. 3. in print advertisements, this diselesufe should be ineluded in the body of th-e 4.3.If there is a leasing office onsite, this information shall be dis made available to potential tenants upon request along with any r-e"ir-ed business lieenses ^ *� 54.A copy of the list shall be attached to all paper rental applications. �5.In any lease agreement or contract, this disclosure shall be included in a separate section within the body of the contract or attached as an exhibit or appendix to the contract. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance will not go into effect until three months after its passage and approval to provide sufficient time for all affected landlords and rental management companies to be ready to comply with the disclosure requirements. Form 0.55 N\/\iA. itiddia Account #: NWCL5004205 Company: CITY OF FAYETTEVILLE-CLERKS OFFI 113 W MOUNTAIN FAYETTEVILLE, AR 72701 Ad number #: 516685 PO #: Matter of. ORD 6883 AFFIDAVIT • STATE OF ARKANSAS ECEIVE 6/23/202 C TY OF FAYETTEVILLE CITY CLERK'S OFFICE I, Maria Hernandez -Lopez , do solemnly swear that I am the Legal Clerk of the NWA Democrat Gazette, a daily newspaper printed and published in WASHINGTON/BENTON county, State of ARKANSAS; that I was so related to this publication at and during the publication of the annexed legal advertisement in the matter of ORD 6883 Pending in the court, in said County, and at the dates of the several publications of said advertisement stated below, and that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County, that said newspaper had been regularly printed and published in said county, and had a bona fide circulation therein for the period of one month before the date of the first publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below. And that there is due or has been paid the NWA Democrat Gazette for publication the sum of $320.72. (Includes $0.00 Affidavit Charge). NWA Democrat Gazette 06122125, NWA nwaonline.com 06122125 Legal Clerk State of ARKANSAS, County of Sebastian Subscribed and sworn to before me on this 23rd day of June, 2025 - N ARY PUBLIC Ordinance:6883 File Number: 2025-231 AN ORDINANCE TO ENACT § 120.03 DISCLOSURE OF RENTAL FEES AND COSTS FOR LEASED RESIDENTIAL PROPERTIES IN THE CITY OF FAYETTEVILLE WHEREAS, potential tenants often make housing decisions based on advertised rent prices but may not be fully aware of additional fees and costs that could significantly affect their ability to afford and maintain rental housing; and WHEREAS, clear and accurate disclosure of all fees and costs associated with rental proper- ties allows prospective tenants to make informed, well -consid- ered decisions; and WHEREAS, providing a clear breakdown of costs ensures that tenants are better equipped to budget effectively and main- tain housing stability; and WHEREAS, by requiring the disclosure of all rental fees and costs before a landlord requires any payment for a rental appli- cation review or background checks should prevent a prospective tenant from wasting money on an application fee in order to rent housing that the tenant cannot afford. NOW, THEREFORE, BE IT OR- DAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Coun- cil of the City of Fayetteville, Arkansas hereby enacts § 120.03 Disclosure of Rental Fees and Costs as follows: "120.03 Disclosure of Resi- dential Rental Fees and Costs (A) Required Disclosures. Landlords or property owners of residential properties leased for periods of thirty days or more shall include a clear and com- prehensive disclosure of all known and fixed fees and costs that are likely be charged to the tenant by the landlord or prop- erty owner prior to any required payment for rental application review or background check or prior to furnishing the lease if the landlord has not earlier re- quired payment for rental appli- cation review or background checks. This includes, but is not limited to: 1. Application and Back- ground Check Fees: Fees lend - lords require to process rental applications or perform back- ground checks, if any. Explana- tion whether rental application fee is for the housing unit or as- sessed against all adult tenants is required. 2. Rent: The base monthly rent amount. 3. Security Deposit: The amount required as a security deposit. 4. Maintenance Fees: Costs for regular monthly or periodic maintenance that may be charged to the tenant. 5. Utility Costs: The landlord must specify who is responsible for payment of costs associated with water, electricity, gas, In- ternet, and trash services but is not required to list an amount. 6. Pet Fees: Any fees, costs, or deposits associated with keeping pets on the property. 7. Parking Fees: Charges for parking spaces or permits, if applicable. 8. Late Fees: The fees im- posed for late rent payments in- cluding any grace periods, charges schedules, or escalat- ing tee policies. 9. Administrative, Leasing, or Miscellaneous Fees: Any other fixed and known fees Imposed on a tenant related to the ad- ministration of the lease or for other purposes not listed above. (B) Clear and Prominent Dis- closure of All Rental Costs Re- quired. 1. All fixed and known fees and costs must be disclosed clearly and in a manner that is easily accessible, visible, and understandable to potential ten- ants. Fees must be itemized and presented separately from the base rent amount and shall be accompanied by a description of the service(s) associated with each fee. 2. In online listings, this dis- closure shall be presented on the same page as the listing de- tails. Landlords and rental man- agement companies shall not be responsible for electronic media outside of their control, includ- ing any syndicated listing plat- forms. 3. If there is a leasing office onsite, this information shall be made available to potential ten- ants upon request. 4-4 copy of the list shall be attached to all paper rental ap- plications. 5. In any lease agreement or contract, this disclosure shall be Included in a separate section within the body of the contract or attached as an exhibit or ap- pendix to the contract. Section 2: That the City Coun- cil of the City of Fayetteville, Arkansas hereby determines that this ordinance will not go Into effect until three months attar Its passage and approval to provide sufficient time for all affected landlords and rental management companies to be ready to comply with the disclo- sure requirements. PASSED and APPROVED on June 17, 2025 Approved: Molly Rawn, Mayor Attest: Kara Paxton, City Clerk Treasurer This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas. Amount Paid: $320.72 June 22, 2025 516685