Property Managers Should Know

This article summarizes several new state laws regulating fees, utility billing, and tenant screening have passed or are advancing in 2026, and each one has direct implications for property managers’ day-to-day operations. Affected states and jurisdictions include California, Colorado, Illinois, Maryland, Virginia, and Washington, D.C.

Fee Transparency and Limitations

Illinois is joining the ranks of other states’ efforts to regulate fee transparency in the housing industry with HB 3564 (i.e.,the Rental Fee Transparency and Limitations Act), which has passed both chambers and is headed to Governor Pritzker's desk. If signed, the law would require all non-optional fees to be listed on the first page of every lease (similar to Virginia’s rental fee transparency law). Any fee not disclosed on the first page is unenforceable. The Act also prohibits a wide range of charges, including lease renewal fees, after-hours maintenance fees, and application fees exceeding $50. Further, late fees are capped and cannot be charged until rent is at least five days past due. If passed, the law would become  effective January 1, 2027.

In Virginia, HB 1005, signed into law on April 13, 2026, prohibits landlords from charging payment processing fees beyond the actual cost charged to the landlord by a third-party processor. It also bans maintenance or repair fees unless the tenant caused the damage. The law becomes effective July 1, 2026. 

Two other Virginia bills,  HB 379 and HB 678, were signed by the governor on April 22, 2026. HB 379 imposes new obligations related to tenant screening, and requires upfront disclosure of screening criteria and any factors which would result in an automatic denial, in addition to other consumer rights. HB 678 mandates a 90-day advance notice of rent increases for properties with more than four units.

Property managers in affected states should review their fee disclosure practices, disclosures provided to applicants, and rent increase and renewal processes.

Utility Billing Regulations

Three states have enacted or are advancing new rules governing how you bill tenants for utilities.

Colorado's HB26-1013, signed on March 26, 2026, clarifies an earlier law by confirming that ratio utility billing systems (RUBS) remain legal, but imposes four conditions: (i) aggregate tenant charges cannot exceed the utility provider's actual bill, (ii) no markups are permitted, (iii) common-area costs must be excluded, and (iv) the allocation method must be disclosed in the lease. However, properties with building permits filed on or after July 1, 2027, must use direct metering or submetering rather than RUBS.

Maryland's SB 130, currently on the governor’s desk and if passed would be effective October 1, 2026, creates the first statewide regulatory framework for water submetering in multifamily housing. It caps administrative fees at $1 per unit per month, prohibits billing tenants for common-area usage or owner-caused leaks, and requires landlords to provide prospective tenants with two years of historical cost data before lease signing.

Virginia's SB 294, signed into law on April 13, 2026 and going into effect July 1, 2027, requires nonpayment termination notices include a full itemized statement of all charges and payments from the prior 12 months, including any late charges, attorney fees, costs, and other charges or damages as contracted for in the rental agreement that are owed.  Utility debits and credits for properties using RUBS or submeters must also be included.

Eviction Procedures and Tenant Protections

Several jurisdictions are updating the rules governing evictions, notice requirements, and tenant screening.

The District of Columbia's RENTAL Act (B26-0164), passed on November 13, 2025 and effective December 31, 2025, made a number of significant changes, including changes to the eviction process,  and amends the Tenant Opportunity to Purchase Act (TOPA). Newer buildings (completed within the prior 15 years) are now exempt from TOPA, though landlords must include the required exemption notice in leases and deliver written notice to existing tenants within 90 days.

Washington's SHB 2452, passed on March 20, 2026 and effective June 11, 2026, removes the certified mail requirement for rent increase notices under the Manufactured/Mobile Home Landlord-Tenant Act, allowing personal delivery or the post-and-mail method instead.

Virginia's HB 95, if signed by the governor, would require properties with more than four units to offer payment plans of up to six months before pursuing eviction when a tenant owes one month's rent or less.

Maryland's Fair Chance Housing Act (HB 1073), still pending in committee, would prohibit criminal history inquiries before extending a conditional offer and limit which convictions a landlord can consider afterward.

Go In-depth

The Entrata Compliance Team has compiled an in-depth analysis of the legislation discussed in this post for clients. For a detailed look at each bill, please visit the Entrata Help Center and navigate to: Compliance section > Compliance Blog Posts > Expanded Blog Posts.

Entrata is Here to Help

The common thread across these bills is a push toward greater transparency in fees, utility billing, and screening practices, and tenant protections. Staying ahead of these changes means reviewing your lease templates, fee structures, billing procedures, and screening workflows well before the effective dates arrive.

For additional news and updates related to rental regulation changes, current clients may visit the Compliance Center (Entrata login required). This resource is available to all clients and will be continuously updated to reflect new legal developments in the multifamily industry in 2026.