Call to Action: Speak Out Against Ann Arbor’s Proposed Ordinance on Pre-Tenancy Fees

Dear Members,

The Washtenaw Area Apartment Association (WAAA) is reaching out to alert you about a proposed ordinance by the City of Ann Arbor that will directly impact landlords and property professionals. The Pre-Tenancy Fees Ordinance, scheduled for its First Reading at the Ann Arbor City Council in early December 2024, could impose significant limitations on how fees are structured in the rental process.

We urge our members to attend this meeting and voice your opposition to this proposed ordinance. This is a critical moment to protect the rights and operational flexibility of rental housing providers. Click this link to view the Ordinance. 

Key Points of the Proposed Ordinance

The ordinance seeks to amend the City’s Housing Code to regulate rental fees, introducing the following major provisions:

1. Prohibition of Pre-Tenancy Fees:
   Landlords would be barred from charging any fees before the lease term begins, including waitlist fees, holding fees, preparation fees, move-in fees, or other similar fees.

2. Cap on Rental Application Fees:

   • Landlords may charge up to $50 for application fees but must fully disclose the amount and criteria for tenant screening in advance.
   • If the applicant is not offered a unit, the fee must be refunded.

3. Applicability and Exceptions:

   • Certain housing types (e.g., fraternities, sororities, and subsidized housing) are exempt.
   • Short-term rentals are not covered by this ordinance.

4. Penalties and Enforcement:
   Violations could result in civil fines starting at $500 per offense, with higher penalties for repeat violations. Tenants may also bring civil action for damages.

Why This Matters

The proposed ordinance would create significant challenges for landlords, including:

• Operational Limitations: Prohibiting pre-tenancy fees eliminates important tools for securing rental commitments and managing property turnover efficiently.
• Increased Financial Burden: Refunding application fees and capping them at $50 could fail to cover actual tenant screening costs, creating additional strain on landlords.
• Reduced Flexibility: This one-size-fits-all approach doesn’t account for the varying needs of rental housing providers or their tenants.

What You Can Do

We need our members to stand together and make their voices heard. Here’s how you can help:

• Attend the City Council First Reading: Be present to share your perspective on how this ordinance could harm your ability to manage rental properties effectively.
• Prepare a Statement: Speak on the record during the public comment session. Share specific examples of how pre-tenancy fees help ensure smoother operations and fair opportunities for all tenants.
• Spread the Word: Encourage your peers and colleagues to join the discussion.

Stay Informed

We’ll provide updates as the situation develops. If you have questions or need support preparing your statement, please reach out to us. Together, we can advocate for balanced regulations that work for both landlords and tenants.

Let’s make our voices count!

Sincerely,
The Washtenaw Area Apartment Association