City of Ann Arbor’s Latest Attempt to Regulate Housing Fees: What It Means for Our Industry

The City of Ann Arbor is once again proposing new amendments to Chapter 105 of the Housing Code, further tightening restrictions on how rental housing providers can operate. This effort, led by the City’s Renters Commission, is positioned as a way to fight so-called “pre-tenancy fees” and “junk fees.” But in reality, it’s another step toward government overreach that risks worsening the city’s housing affordability crisis.

What’s Being Proposed

The proposed ordinance would:

• Ban all “Mandatory Tenancy Fees.” Property professionals would no longer be allowed to charge any required fees outside of rent and security deposits.

• Allow only “Optional Tenancy Fees.” Fees for services such as parking, pets, garbage, or lockouts would be permitted, but must be disclosed clearly in leases.

• Require full disclosure of rent and utilities. All advertisements must include the total price of rent and state whether utilities are included. These requirements must also be reflected in lease agreements.

Our Position

At the Washtenaw Area Apartment Association, we support transparency in housing transactions. Renters deserve to know what they are paying for, and we encourage best practices across the industry. However, we strongly oppose the idea of forcing all mandatory fees into the rent figure.

Here’s why:

1. Higher Rents for Everyone.
   When landlords are required to roll all fees into the rent price, the result is artificially inflated rent figures across the board. Tenants will see rents increase dramatically—not because housing providers want to raise costs, but because the city has left no alternative.

2. Less Transparency, Not More.
   Ironically, combining mandatory fees into the rent dilutes transparency. Renters will no longer see the breakdown of what they are paying for—only a single, higher rent price. This creates confusion and frustration, making it harder for tenants to understand why rents rise year after year.

3. Strained Tenant-Landlord Relationships.
   The housing market in Ann Arbor already experiences tension between landlords and tenants. Policies like this only deepen that divide, leaving renters frustrated with higher prices and landlords forced into a defensive position.

A Better Solution

There is a simpler, fairer way to achieve transparency without driving up rent prices:

✔️ Require all landlords to clearly disclose rent and mandatory fees in advertisements and on the first page of lease agreements.

This approach ensures that renters have a full, upfront picture of their housing costs, while still allowing landlords to set rent in a way that makes sense for their operations. It builds trust, encourages open communication, and avoids unnecessary cost inflation.

The Bigger Picture

Every time the City of Ann Arbor adds another layer of regulation, it becomes harder for property owners and developers to provide affordable housing. These constant restrictions:

• Increase operational costs.

• Discourage the development of new housing.

• Shrink the supply of rental units at a time when Ann Arbor is already facing a housing crisis.

The result? Higher rents, fewer housing options, and a worsening affordability problem—the exact opposite of what policymakers claim to be trying to achieve.

Our Commitment

The Washtenaw Area Apartment Association will continue to fight against this ordinance and advocate for policies that create a fair, transparent, and sustainable rental housing market. We believe in solutions that strengthen tenant-landlord relationships, encourage housing development, and keep Ann Arbor’s rental market competitive and accessible.