Ann Arbor Renters Commission urges City Council to cap pre‑tenancy fees at $50, require refunds within 60 days

The Ann Arbor Renters Commission voted unanimously Dec. 19 to send a resolution to City Council supporting a proposed ordinance that would restrict pre‑tenancy fees and require faster refunds.

The resolution endorses adding section 8532 to Chapter 105 of the City of Ann Arbor housing code (Title 8), limiting pre‑tenancy charges to a single application fee — capped at $50 to cover administrative costs such as background and credit checks — and requiring that landlords refund the fee within 60 days if the applicant is not offered a lease. The commission’s chair said the ordinance passed its first reading at City Council earlier in the week and is scheduled for a second reading and final vote in January.

Commissioners praised the measure as a concrete step to reduce barriers for renters, particularly students and those with limited resources. “I know how much this affects the students as well,” Commissioner Gail said during the discussion. Jordan called the draft “fabulous” and thanked the resolution’s author for bringing it forward.

The commission did discuss the 60‑day refund window; one commissioner asked why the proposal used 60 days instead of a shorter period such as 30 days, but no change was proposed at the meeting. The resolution directs the Renters Commission to educate the public about the amendment and to collaborate with city staff on its implementation once City Council acts.

The vote was by voice; the commission forwarded the resolution to City Council for consideration. The commission’s staff noted that the ordinance’s adoption would likely require additional enforcement resources, a point commissioners said they would raise with the city during the budget season.

The City Council had approved the ordinance’s first reading earlier that week and staff told the commission they expect a second reading and final vote in January.