SAN DIEGO (KGTV) – If you rent your home, you know extra fees can add up quickly.
Now, City of San Diego leaders are considering a proposal to cap or eliminate late fees and pet fees.
The city councilmembers behind this proposal say they want renters to know what they're really paying for month-to-month before signing on that dotted line.
“We're trying to make sure that housing in San Diego is more affordable, that pricing is more transparent, and that people can count on the price that they signed up to pay at the beginning of their lease to be the price that they continue to pay,” Councilmember Sean Elo-Rivera said.
Elo-Rivera is one of the councilmembers pushing for this ordinance.
City staff explained in a report that there can be a lot of different fees that can be added to your bill that renters may not know about upfront. This proposal would require landlords to give a full breakdown.
A city staff report showed nearly half of the people living here rent their homes.
Elo-Rivera said it's time to put some limits in place, including the impact application fees and process could have on applicants.
“Those application fees can add up to $400, 500 $600 before you've even, you know, got your foot in the door,” Elo-Rivera said. “And so what we're saying is, you, you have a legitimate credit report and, it's run by a reputable agency that you can use that throughout your search process and, you don't have to keep paying over and over again.”
This ordinance proposal also looks to cap some recurring fees, like parking and trash, to no more than 5 percent of your rent. Late fees would be capped at 2 percent, and pet fees could be eliminated altogether.
Elo-Rivera told ABC 10News those fees can be used by big corporate landlords as a workaround to state law that limits how much rent can go up every year.
“And so, we're just saying, we advertise what you're actually going to charge, and that's what you need to charge. So no, I, I think the, the idea that this will have unintended consequences that will actually increase rent,” Elo-Rivera said. “That is the constant tactic that is used by corporate landlords in this state to scare renters into believing that what is best for them actually isn't best for them.”
The Southern California Rental Housing Association sent ABC 10News the following statement on the proposed ordinance:
“Everyone supports transparency, but this proposal goes far beyond transparency. The problem is that the City has not shown that hidden rental fees are a widespread problem, yet it's creating a sweeping new layer of regulation,” Molly Kirkland, Director of Public Affairs, Southern California Rental Housing Association, said. “The ordinance leaves important questions unanswered and creates uncertainty for housing providers trying to comply with the law. One thing is clear: it adds risk, red tape, and costs that make it more difficult to provide housing. At a time when San Diego needs more housing, the City should be removing unnecessary barriers – not creating new ones.”
The City Council will be meeting at 2pm in the afternoon session to discuss the ordinance.
