California Assembly passes AB 12 48 to curb hidden rental fees

A pivotal discussion unfolded during the California Assembly Judiciary Committee meeting on April 22, 2025, as lawmakers reviewed Assembly Bill 12 48, aimed at protecting tenants from deceptive and exploitative junk fees. The bill seeks to ensure that landlords adhere strictly to the costs outlined in rental agreements, eliminating unexpected charges that can significantly inflate housing costs.

Assemblymember Haney, the bill's author, emphasized that tenants should not be blindsided by additional fees after moving in. "Rentals shouldn't be surprised or blindsided by charges," he stated, highlighting the need for transparency and fairness in rental agreements. Starting in 2026, AB 12 48 would restrict landlords to charging only rent, a refundable security deposit, and a limited set of clearly defined fees, effectively closing loopholes that have allowed hidden charges to proliferate.

The bill also targets manipulative billing practices, particularly ratio utility billing systems (RUBS), which can lead to unpredictable utility charges based on the entire building's usage rather than individual consumption. Legal experts and tenant advocates voiced strong support for the bill, arguing that these hidden fees disproportionately affect low-income renters and undermine California's rent cap laws.

Ethan Silverstein, a tenants' rights attorney, testified about the growing prevalence of hidden fees, stating, "These fees are not just unfair; they undermine California's rent cap laws." He pointed out that landlords often impose charges for utilities and other services that should be included in the rent, creating confusion and financial strain for tenants.

However, the bill faced opposition from various housing associations, including the California Association of Realtors, which argued that the legislation could inadvertently lead to higher base rents for all tenants. Critics expressed concerns that the bill's restrictions on separate fees could limit landlords' ability to offer optional services, such as parking or pet fees, ultimately reducing housing options.

As the committee deliberated, some members acknowledged the complexity of balancing tenant protections with the needs of landlords. The discussion highlighted the ongoing struggle to create a fair rental market in California, where transparency and predictability in housing costs are increasingly critical.

The committee's decision on AB 12 48 will have significant implications for California's rental landscape, as lawmakers continue to navigate the challenges of housing affordability and tenant rights. The bill's fate remains uncertain, but its introduction marks a crucial step toward addressing the financial burdens faced by renters across the state.