MTO takes on Application Fees

MTO hotline counselors have been hearing that landlords have been charging applicants outrageous fees when applying for housing without providing any explanation for the basis of the fees or if they are refundable. These ambiguous fees can go towards background checks, credit checks, or simply be used as a holding fee to “guarantee” the next available room. We do not know how many landlords are asking for these large fees. However, we are aware that some applicants have paid several hundred dollars in mysterious application fees only to find out there is no vacancy in the building. Subsequently, these applicants are denied a refund.

Representative Barbara Flynn Currie is responsible for introducing HB 1607 ca. HB 1607 will require landlords and management companies to charge reasonable fees and provide a written itemized account of each fee. HB 1607 was passed by committee on March 16 by party vote. This bill will make it illegal for companies to charge prospective tenants fees when there are no rental units available and hold companies responsible for making a good faith effort to return any amount of an application fee that is not used. Management companies or landlords that violate this law would be liable to the applicant for the application fee, civil court filing costs, and reasonable attorney fees incurred. Metropolitan Tenants Organization would like to hear from you. Have you been charged an application that seemed high? If so, what was it for and did you rent the apartment? Your stories can be helpful in securing passage of this law.

State of the Renter in the City of Chicago

The Hotline has served as MTO’s eyes and ears into the lives of renters. Since its inception in 1994, the MTO Hotline has fielded more than 150,000 calls, carefully collecting information and tracking data on housing issues. In collecting this data, Hotline counselors have spent thousands of hours listening to the stories told by Chicago’s renters. The story of renters in Chicago is that they are increasingly facing unpredictability in the rental housing market, financial stress, and deteriorated living conditions. Their lives are and have been in tumult for years.
– John Bartlett, Executive Director of the Metropolitan Tenants Organization

Above is an except from the State of the Renter report issued by MTO in 2009. For too long, the needs of renters – invaluable investors in our communities – have been marginalized in favor of a policy that focuses only on homeownership. Renters have been regarded as transient occupants rather than stakeholders. MTO recommends a national housing policy that balances homeownership and rental housing. Policy makers have failed to recognize the importance of a stable rental housing market and certainly have an insufficient understanding of the issues facing renters.

An executive summary of the State of the Renter report can be found here. For the full report, click here. We always welcome feedback. Please feel free to leave comments or questions in the space provided at the bottom of this page.