What fees must be disclosed before signing a lease?

Rental Fees Disclosure for Tenants in Connecticut

When renting a property in Connecticut, tenants have the right to be fully informed about any fees associated with their lease before signing. Connecticut law aims to protect renters by ensuring transparency and fairness in the landlord-tenant relationship. Understanding which fees must be disclosed upfront can help you avoid surprises and make informed decisions.

Overview of Required Fee Disclosures in Connecticut

Connecticut's tenant protection laws mandate landlords to disclose certain fees related to renting a residential property. These disclosures must typically occur before or at the time a lease agreement is signed. The key fees landlords must disclose include:

• Security Deposits
• Application Fees
• Last Month’s Rent Deposits
• Non-refundable Fees
• Rent Amount and Additional Rent or Charges

Below is a detailed overview of each fee category and the disclosure requirements.

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1. Security Deposit

What Is It?

A security deposit is money paid upfront to cover potential damage to the rental unit, unpaid rent, or other breaches of the lease.

Disclosure Requirements in Connecticut

• Landlords must clearly disclose the amount of the security deposit required before signing the lease.
• The purpose of the security deposit must be communicated to the tenant.
• Under Connecticut law, the maximum security deposit is limited to two months’ rent for new leases starting January 1, 2022, and later.
• Landlords must provide information about how the deposit will be held, including whether it is placed in an escrow account.
• Landlords must give tenants a written statement listing any damages and specify the timeline for the return of the security deposit after the tenant moves out.

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2. Application Fees

What Is It?

An application fee covers the cost of background checks, credit reports, or screening services landlords use to evaluate prospective tenants.

Disclosure Requirements in Connecticut

• Landlords must disclose if an application fee is required before the tenant submits an application.
• Landlords should provide the exact amount of the application fee.
• According to state guidelines, application fees must be reasonable and relate to the cost of screening.
• Fee refunds or non-refundable status must also be explained.
• The applicant is entitled to receive a written receipt for any application fees paid.

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3. Last Month’s Rent Deposit

What Is It?

Some landlords request last month’s rent in advance as a deposit separate from the security deposit.

Disclosure Requirements in Connecticut

• If a landlord requires payment for the last month’s rent upfront, this must be disclosed clearly before lease signing.
• The landlord must specify the amount and that this deposit will be applied toward rent in the final lease month.
• This amount is separate from the security deposit and should not be confused with it.

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4. Non-refundable Fees

What Are They?

Non-refundable fees are charges that tenants pay which will not be returned under any circumstances. Examples may include cleaning fees, pet fees, or administrative fees.

Disclosure Requirements in Connecticut

• All non-refundable fees must be explicitly disclosed in writing prior to signing the lease.
• The nature and purpose of each non-refundable fee must be clearly stated.
• Landlords cannot disguise non-refundable fees within other charges; each fee must be itemized.
• Tenants should confirm whether these fees are included in the total rent or collected separately.

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5. Rent Amount and Additional Charges

Disclosure Requirements in Connecticut

• The lease agreement must state the exact monthly rent amount.
• Landlords must disclose any additional charges or fees that may be charged during the tenancy, such as:

- Late rent fees - Returned check fees - Parking fees - Utility fees

• Late fees and other penalties must comply with Connecticut law and be clearly outlined in the lease.
• Tenants should ensure all potential fees are understood before signing.

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General Best Practices for Tenants in Connecticut

To protect your interests when renting in Connecticut, consider these additional tips:

• Request a Written Fee Summary: Ask the landlord or property manager for a detailed breakdown of all fees related to the rental unit.
• Review Your Lease Carefully: Confirm that all disclosed fees match what is written in the lease agreement.
• Understand Fee Limits: Familiarize yourself with Connecticut's limits on security deposits and late fees.
• Keep Records: Always retain copies of receipts, disclosures, and your signed lease.

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Conclusion

In Connecticut, landlords are legally obligated to disclose all rental-related fees before a tenant signs a lease. This includes security deposits, application fees, last month’s rent deposits, any non-refundable fees, and details about rent and additional charges. These disclosures promote transparency and help tenants make informed housing decisions. Always review fee disclosures thoroughly and ensure they are documented in writing to protect your rights throughout your tenancy.