Legislation Moves Forward To Cap Rental Application Fees In NJ

Rental application fees could be capped under a new bill that passed the state Assembly last week.

The bill (A4899) would not allow landlords and their agents to charge application fees over $50. The fee limit would be subject to change after annual review from the Division of Consumer Affairs according to changes in the consumer price index.

The measure is part of a series of bills that would help tackle the growing housing availability and affordability crisis in the state.

“Housing affordability continues to challenge many New Jersey residents, especially those simply trying to apply for a place to live,” said bill sponsor Assemblywoman Linda Carter (D-Somerset) in a statement. 

“This legislation takes a meaningful step toward protecting prospective tenants from excessive and repeated application fees, making housing more accessible for all New Jerseyans,” she added.

Around half of New Jerseyans are rent-burdened, or spend more than a third of their income on rent. Black and Latino households are also more likely to be rent-burdened than their white counterparts. Housing costs have only increased year over year, increasing nearly 6% in New Jersey in one year, according to the U.S. Bureau of Labor Statistics.

State Senate bill sponsors argue that rental application fees only add to housing costs. State Sen. Brian Stack (D-Hudson) said he knew of tenants who paid as much as $150 in fees, according to the New Jersey Monitor. 

Landlords could be fined $1,500 if found to be in violation of the bill, and $250 would go to the prospective tenant.

The bill will now be reviewed by the Senate Budget and Appropriations Committee.