Transparent communication helps renters understand extra fees
Apartment Fee Confusion Carries Growing Risks For Owners
Clear communication around apartment fees is no longer just a customer-service issue. In a flat rent-growth environment, multifamily owners who explain charges, demonstrate value and give renters meaningful choices may be better positioned to protect occupancy, retention and ancillary revenue while reducing regulatory risk.
Rising property taxes, insurance premiums, utility bills and maintenance expenses are squeezing multifamily net operating income. For many owners and operators, the practical response is some combination of higher rents and charges for amenities or services.
But the way those fees are presented can matter as much as the fee itself.
A new report from proptech vendor Foxen argues that transparent, structured communication can help renters understand what they are paying for and why. That matters for operators trying to preserve revenue without creating the type of renter frustration that can damage leasing, renewals and a property’s reputation.
The stakes are rising as regulators take a closer look at rental fees. Seattle’s City Council recently voted unanimously to approve rental junk-fee legislation that requires rental agreements to be no longer than two pages and to clearly disclose rent, concessions, utilities and mandatory and optional fees.
For investors, the issue is broader than compliance. With national multifamily vacancy at 4.8% in the first quarter of 2026 and average year-over-year rent growth at just 0.2%, operators have less room to rely on rent growth to offset higher expenses. Maintaining occupancy and retaining renters become more important to property performance.
Fee Surprise Creates Risk
Unexpected charges can undermine a renter’s confidence in an operator before move-in. Foxen’s survey of 914 renters nationwide found that about 55% had been surprised by at least one fee.
That kind of surprise can create an immediate customer-service problem. It also can invite more serious consequences when complaints become widespread enough to attract attention from local officials and regulators.
Seattle’s new law illustrates the direction of the policy debate. The legislation is intended to make rental terms easier for prospective tenants to understand by requiring a shorter agreement and clearer disclosure of the full cost of renting.
For owners, the lesson is not necessarily that fees must disappear. Rather, the report suggests that charges are more likely to be accepted when renters understand whether they are mandatory, what they cover and what value they provide.
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Choice Drives Perceived Value
The survey found that renters place a premium on choice. When asked what makes a fee worth paying, 43% identified the ability to choose whether to participate as the most important factor. Another 41% said the price must feel fair relative to the value delivered.
That distinction matters for operators deciding which services to bundle and which to offer as optional add-ons. A service may generate additional revenue, but renters are more likely to view it favorably when they believe they can decide whether it fits their needs.
Respondents viewed services connected to protection and financial well-being most favorably. Ninety-four percent said property damage protection was somewhat or extremely valuable, while 91% said the same about rent reporting.
Those findings suggest that operators may have a stronger case for fees tied to tangible benefits, particularly when the service addresses a clear renter concern. Simply adding a charge to a lease may not be enough; management also has to explain the benefit in a way residents recognize.
Information Supports Revenue
Foxen’s report connects renter empowerment to willingness to pay for services. While 69% of respondents said they felt empowered during the leasing process, nearly one-third did not.
Renters who did not feel empowered were less likely to say they had sufficient information to make decisions and less likely to agree that they had a choice in the services for which they paid. By contrast, renters who felt empowered were more likely to say they understood the full cost of renting, had enough information to assess a service’s value and were willing to pay for additional services.
For multifamily operators, that suggests fee communication should be treated as part of the leasing and revenue-management strategy, not a disclosure exercise handled at the end of the process.
A clearer explanation of charges, services and opt-in choices could help a renter make a more informed decision. It also could reduce the friction that comes when the all-in cost of a unit becomes apparent only after a prospect has invested time in the leasing process.
Digital Tools Can Help
Technology may provide one practical way to make fee information more accessible. Two-thirds of renters said a self-service portal that allows them to review, enroll in or opt out of services would make them more likely to participate.
The survey also found that 64% to 73% of respondents were comfortable with AI-powered tools for routine tasks, including questions about fees, maintenance requests and renewal reminders.
That does not mean technology can replace clear lease language or responsive property staff. Renters still need straightforward disclosures and the ability to understand the financial commitment before signing. But digital tools could give residents a more convenient way to review options and give property teams more time to handle complex questions and service issues.
The survey is based on renter responses to stated preferences, which may not always predict how people will behave when faced with an actual lease or charge. Still, its central message is relevant for owners confronting higher costs and limited rent-growth potential: transparent pricing, understandable value and real choice can be as important to fee revenue as the services themselves.
Source: GlobeSt.
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