Additional fees could impact renters’ abilities to afford housing; Idaho leaders say reform is needed

The formula for securing a rental property used to be simple. Scrape together an upfront payment covering first and last month’s rent, add in a security deposit and renters were good to go in their new digs.

But the traditional method renters used to live by in the housing market has evolved into a more complex world involving additional, or what some might refer to as “extraneous” monthly rental fees. This can include increased application fees, parking fees — higher in some cases for covered parking — fees for internet services, renter’s insurance and what has become an emerging practice of charging animal owners additional monthly pet rent.

For many prospective renters, adding up these extra fees to lock in an affordable rental property can be a monumental task, even here in Idaho. Or, “really concerning overall” is how Zoe Ann Olson, executive director of the Intermountain Fair Housing Council classifies the rental market for prospective renters.

“There is nowhere in the state of Idaho, all 44 counties, where renting is affordable for working and middle-class residents,” Olson said. “Layering rent with an assortment of additional costs doesn’t help.”

Democratic Sen. Ali Rabe, who represents the state’s 16th congressional district, and who serves as the executive director of Jesse Tree, a nonprofit organization dedicated to preventing eviction and homelessness, stressed that overall rental costs in Idaho have increased about 40% in recent years.

“We are now considered by the [National Association of Realtors] to be the second least affordable housing market in the U.S.,” Rabe said. “Rent is expensive on its own, but in the last several years, we have seen an increase exponentially or uptick in rental fees in addition to actual rent.”

Rabe also referenced a statistic from the United Way of Idaho that indicates that statewide, 30% of the Gem State’s population is comprised of renters, with most paying a “disproportionate amount of their income” towards rent.

According to the state’s Landlord and Tenant Manual issued by the Office of the Attorney General, “Idaho does not restrict the amount of rent or deposits that landlords can charge.” Additionally, landlords can “set their own policies for smokers or pet owners, as long as they are not discriminatory under local, state or federal law.”

Senate Bill 1039, legislation passed in Idaho in 2023, maintains that rental fees must be “reasonable” to actual costs of landlords. And fees exceeding monthly rental charges must be written into lease agreements for transparency and to create fairness.

Such policy also applies to pet owners seeking a place to call home. Pet agreements incorporated into the rental contract establish monthly fees for the number of animals that can be housed, if any, as well as deposits that are deemed refundable or non-refundable regarding pets.

In addition to a typical security deposit, pet owners nowadays find themselves faced with having to pay what are often labeled a “one-time, non-refundable” pet fee, a separate pet deposit, as well as pet rent, an additional monthly cost for each animal. Such fees can range from $25 to $40 depending on the type, size and breed of animal.

Because Idaho does not legislate what landlords can charge in these cases, a tenant who has two animals, and is charged $25 monthly for each pet, is looking at spending an additional $600 a year in non-refundable pet rent. However, those considered service animals are exempt from any additional charges or fees.

One leasing agent for a large-scale local apartment complex, who asked not to be identified, said charging both a one-time pet fee and a pet deposit helps cover “outside of what wear and tear” may result from human and above what a normal security deposit covers. This, the agent said, could include such things as carpet damages, stains or even scratched walls caused by pets.

However, in this case, as in most other rental facilities within the Treasure Valley, the $35 monthly pet rent charged by the agent’s complex for each animal is considered separate from any security or pet deposits, and is not used to cover any pet damage because in the rental agreement it is considered additional rent for the actual pets.

Some may argue that tenants paying additional pet fees is considered “double-dipping” by landlords aiming to increase rental revenue.

“It certainly creates revenue for the housing provider, but it’s also another burden that prices people out of being able to afford rental housing,” Olson said. “I think we need to really look at these types of additional fees and address them. We need to ask if they are truly necessary.”

Plus, in her experience, Rabe knows it is not uncommon to encounter renters who consider such monthly rental fees for pets to be unfair, fees above what tenants who are smokers, or those who have children may pay monthly.

“Landlords will claim there can be or there is more damage caused by animals,” she said. “But you would think if there was actual damage, a security deposit is in place for when a person moves out. Essentially it is like charging an occupancy fee for the pets.”

Even if the fee is considered within the bounds of rental standards, the burden of pet rent fees, Olson said, directly impacts animal-owning renters on a monthly basis. “Whether it is reasonable or not is determined by the actual amounts charged for this fee. But I do think it makes it harder for people to rent if they are paying pet rent on top of a security deposit and a one-time pet fee.”

In her dual role serving in the state Legislature and overseeing a local nonprofit organization that assists renters, Rabe could not agree more.
“These pet fent fees create challenges because rent is already quite expensive and folks are already strained with their monthly budget trying to pay rent,” she said.

Factor in the average median home price in the Treasure Valley is now well over $400,000, along with mortgage interest rates that are still hovering in the 6.5% range, and renters who hope to save up enough to transition one day from renting to owning are facing an uphill battle.

“If people are struggling to just keep up with rent and additional costs, they’ll never be able to afford to save for a down payment for a home,” Olson said. “We want all demographics to be able to accomplish this.”

Having spent the better part of the past 13 years dealing with this issue, Olson has seen a lot of changes in the local housing and rental market. She hopes to see leaders in local industry and state lawmakers work together to help renters become more secure in their housing.

“What are we doing as a state to look at the housing affordability issues, the regulations,” she said. “Can we have meaningful discussions about things like applications fees or pet rental fees? I think it’s always a good idea to bring these concerns to our senators and representatives. It’s definitely something to bring to their attention.”

“It’s challenging to try to pass legislation that would impact landlords and dictate how they should run their business,” Rabe said. “However, I would like to see more limits regarding rental fees in general.”

Through her duties overseeing Jesse Tree, Rabe helps tenants to make sure other fees, such as late fees, or other charges tenants may face are in fact legal. “A lot of people still don’t realize a lot of fees they are paying are not legal. Fees have to be reasonable and in writing within the rental agreement.”

Especially when it comes to late fees.

“This is one of the biggest challenges we see,” Rabe said. “Even for just one day, we’ve seen people charged up to $100. And if someone goes to eviction court, attorney fees can then be passed on to the tenant.”

One tenant she went to bat for encountered a $300 charge from a landlord for having a praying mantis in a small cage inside an apartment, while another renter was cited and received a penalty fee for leaving a package outside a rental unit for too long.

Such instances, Rabe said, can impact a tenant’s ability to stay current in their rent.

“If someone pays rent and has outstanding fees, what then happens is the rent they pay is applied first to the outstanding fees,” she said. “The renter pays rent, and maybe not knowing about the fee, or thinking they can pay the fee later. Then the actual rent is considered not fully paid or outstanding, with late fees tacked on top of this.”

Ultimately, Rabe wants to see renters treated fairly.

In April 1968, President Lyndon B. Johnson signed into law the Fair Housing Act, which prohibits housing discrimination, while designating the month of April as National Fair Housing Month.

This year marks the legislation’s 57th anniversary.

“Housing is everything to people. Without it, people can’t work, can’t be a part of our society, can’t contribute to our economy,” Rabe said. “That is why it is so important to recognize how important housing is and how challenging it can be for so many people these days with all the associated rental costs they face.”