New Jersey Senate Bill S3276

New Jersey 2024-2025 Regular Session

• Introduced: 5/16/24
• Refer: 5/16/24

Caption

Limits amount of residential rental property application fee.

Impact

The impact of S3276 is significant as it addresses the affordability crisis in housing by limiting the financial burden placed on renters during the application process. By establishing a clear limit on application fees, the bill aims to enhance access to housing for low- and moderate-income individuals. The penalties outlined for landlords who violate this cap—up to $1,500 in fines plus legal costs—further reinforce compliance, allowing for greater protections for tenants in New Jersey’s rental market.

Summary

Senate Bill 3276 aims to regulate application fees for residential rental properties in New Jersey. The bill stipulates that landlords or lessors can charge a maximum application fee that is capped at five percent of one month's rent or $75, whichever is lower. This measure is designed to protect prospective tenants from excessive fees that could pose barriers to their ability to secure housing. With this legislation, the state seeks to ensure that application fees are more affordable and transparent.

Contention

Discussion around S3276 has highlighted concerns from both landlords and tenant advocacy groups. Supporters argue that the bill is necessary to prevent exploitative practices that can exacerbate housing insecurity among vulnerable populations. However, some landlord representatives express that stringent fee caps could reduce their ability to screen potential tenants effectively, thus complicating the rental process and possibly leading to increased risks for property owners. This dynamic reflects broader tensions in the housing market over the balance between tenant rights and landlord protections.