Hidden fees are officially off the table for California rental listings. Under AB 747, effective January 2026, landlords must disclose all mandatory fees upfront, in both advertising materials and the lease itself. This includes charges for trash, water, sewer, and any other costs passed through to tenants.
A listing that shows an attractive base rent while burying additional charges deeper in the lease is no longer compliant, and enforcement is expected to focus heavily on exactly this kind of advertising practice.
Key Takeaways
AB 747 requires upfront disclosure of all mandatory fees in advertising and lease documents starting in 2026.
This applies to recurring charges like utilities, not just one-time move-in costs.
Non-compliant advertising and lease structures can expose landlords to disputes and penalties.
Reviewing your current listing templates and lease language now avoids scrambling later.
What Counts as a Mandatory Fee
The law is aimed squarely at the practice of advertising a low base rent while tacking on required charges elsewhere. If a fee is mandatory, meaning the tenant has no real ability to opt out of it, it needs to be visible from the very first listing a prospective tenant sees, not just disclosed at lease signing after they have already invested time touring the property and submitting an application.
This shift is significant for competitive rental markets like San Mateo, where prospective tenants often compare multiple listings side by side, and a rent figure that looks better than it actually is can create real friction once the true monthly cost becomes clear.
For San Mateo landlords advertising across multiple platforms, whether Zillow, MLS, or social media, this means every listing template needs a second look before the new year. It is worth walking through each platform you use and confirming that mandatory fees appear in the initial listing itself, not just buried in a linked application or lease document.
Reviewing Your Current Practices
This is a good opportunity to review your current advertising and lease structure holistically rather than making a single quick edit. Consider auditing every recurring charge tied to your properties, utility pass-throughs, trash service fees, any mandatory amenity charges, and confirming each one is clearly stated in both your marketing materials and your lease agreements going forward.
Our rental marketing services build fee transparency into every listing from the start, which keeps your properties compliant while still presenting them competitively in a market where clear, trustworthy pricing increasingly influences which listings attract serious applicants.
FAQ
Does this apply to optional services like a parking upgrade?
Generally, optional fees that a tenant can decline are treated differently from mandatory ones, but the distinction matters and is worth confirming for any add-on services you offer, since misclassifying a fee as optional when it is functionally required could still create compliance issues.
What happens if my advertising doesn't include required fees?
Non-compliant advertising can expose you to disputes and potential penalties, making a proactive review of your listing templates a smart step before the requirement takes full effect rather than something to address after a complaint arises.
Do I need to update leases that are already signed?
The disclosure requirement is primarily aimed at new advertising and lease agreements going forward, but reviewing your renewal process now ensures you are ready as existing leases come up for renewal.
