If you’re a multifamily operator, you’re likely familiar with the concept of rental fee transparency, and more specifically, total monthly leasing price (TMLP). Simply put, it’s the all-in answer to the questions renters are already asking: What is the total monthly leasing price, and what will I actually pay each month?<\/p>\n\n\n\n
The topic is sparking conversations across the industry \u2026 along with questions. What does fee transparency look like in practice? Is it necessary in today\u2019s market? Does it only check a compliance box, or is there more to it?<\/p>\n\n\n\n
We\u2019re here with answers. This article covers what TMLP is, why it matters and how it\u2019s creating opportunities for operators. You\u2019ll also get four relevant tips to try now<\/strong>.<\/p>\n\n\n\n Quick preview: New data shows that rental fee transparency is your ticket to building more trust with your customers, resulting in more leads, leases and NOI.<\/p>\n\n\n\n This content is based on our presentation from the recent Apartment Innovation and Marketing Conference<\/a> (AIM). While we\u2019ll touch on expanding fee transparency laws, this is not legal advice. You should consult experts to see what\u2019s required in your market.<\/p>\n\n\n\n Rental fee transparency means showing all mandatory fees associated with renting an apartment at your community<\/strong>. <\/p>\n\n\n\n Total monthly leasing price encapsulates all of those fees, including monthly rent, application fees, move-in costs and more. Situational fees, such as pet rent, generally fall into TMLP too. <\/p>\n\n\n\n Showing TMLP doesn\u2019t just apply to one platform, either. It can (and should) be prioritized across your marketing, including on property websites and ILSs like RentCafe.com<\/a>.<\/p>\n\n\n\n Now, why is it important to show TMLP? We’ll get into that below, but the idea is by disclosing fees upfront, you\u2019re providing a more accurate cost assessment to renters<\/strong>. When renters are aware of the estimated total cost before they apply, the ones who apply are high-intent leads that are more likely to convert.<\/p>\n\n\n\n Also, in some areas, disclosing all fees online is required by law<\/strong>. This is sometimes referred to as all-in pricing mandates or total-price disclosure laws. Rental fee transparency can help you improve compliance and reduce the risk of legal disputes<\/strong>.<\/p>\n\n\n\n Before we dive into the data, let\u2019s address some common concerns around rental fee transparency and showing TMLP.<\/p>\n\n\n\n Here\u2019s what you\u2019ve potentially heard:<\/p>\n\n\n\n The data tells a different story. Properties showing TMLP consistently outperform other properties in terms of engagement, conversions and NOI<\/strong>. <\/p>\n\n\n\n To measure the impact of showing TMLP, our marketing agency, REACH by RentCafe<\/a>, looked at 380 RentCafe websites<\/a> over 7 months. Out of those properties, 209 displayed TMLP, and 171 showed base rent only. Both groups operated under identical market conditions.<\/p>\n\n\n\n The findings were clear, showing that TMLP properties deliver the best results. Here\u2019s what REACH Senior Director Catriona Orosco shared at AIM:<\/p>\n\n\n\n TMLP properties also outperformed the control group every month. In fact, properties that displayed the base rent only drove 16% fewer leads and 7% fewer leases.<\/p>\n\n\n\n The takeaway is that TMLP doesn\u2019t scare renters. When websites offer rental fee transparency, renters engage and convert more<\/strong>.<\/p>\n\n\n\n Additional data supports this. Properties displaying TMLP on the Apartments.com<\/a> ILS saw 17% more search results impressions, 15-20% more leads and a roughly 20% improvement in lead-to-lease conversions.<\/p>\n\n\n\n Wondering where NOI comes into play? Brandy Daniel, chief strategy officer at BH Management<\/a>, assessed NOI from TMLP properties through a 12-month pilot.<\/p>\n\n\n\n The pilot looked at three properties across small to mid-sized markets. Each property replaced mandatory add-on fees with a single all-in monthly price, then used that price for marketing and quoting. That price landed at 4% above BH Management\u2019s competitors.<\/p>\n\n\n\n Initially, some of BH Management\u2019s team worried that the higher price would scare away leads. And, at first, lead volume did decrease. But they quickly noticed that by displaying TMLP, the leads they received were higher quality.\u00a0<\/p>\n\n\n\n Take a look at the results: TMLP properties saw a 7.8% NOI increase, 44% reduction in bad debt, improved renewal conversion, lower application cancellations and an overall satisfaction score that climbed a full point<\/strong>. Residents responded so positively that some were thanking property managers directly and unprompted. Leasing and operations teams embraced it too. <\/strong><\/p>\n\n\n\n Greg Benson, AIM panelist and managing director at Greystar<\/a>, closed this portion of the presentation with some advice: “We’re in a space of first-mover advantage right now. Take the advantage. Get in the game.”<\/p>\n\n\n\n You\u2019ve seen the data \u2026 displaying TMLP is advantageous. But what should you do in practice? We\u2019ve got four tips for multifamily operators.<\/p>\n\n\n\n Try combining fees or folding them into your base rent, that way TMLP appears straightforward, not overwhelming. REACH found that its multifamily clients average 26 fees at the property level, which is a lot for renters to digest.<\/p>\n\n\n\n Offer an easy-to-use cost estimate tool on your website and listings. RentCafe’s cost calculator<\/a> lets renters explore one-time fees, toggle add-ons and adjust lease length to see a personalized total.<\/p>\n\n\n\n Audit your pricing regularly in tandem with your marketing, operations and even IT teams. Accurate pricing builds trust with renters and signals credibility to search and AI engines, which reward fresh, reliable content.<\/p>\n\n\n\n Add structured data, including schema markup, to your website pages. This helps search and AI engines quickly scan, interpret and surface your pricing. This is critical as more renters search using natural language phrases that include TMLP.<\/p>\n\n\n\n Get more rental fee transparency tips from REACH<\/a>.<\/p>\n\n\n\n Rental fee transparency isn\u2019t just about compliance. The data shows it drives more leads, leases and NOI, especially as renter preferences and search trends evolve<\/a>.<\/p>\n\n\n\nUnderstanding rental fee transparency & why it matters<\/h2>\n\n\n\n
Common concerns about rental fee transparency<\/h2>\n\n\n\n
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What the data shows: Fee transparency results<\/h2>\n\n\n\n
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BH Management’s 12-month TMLP pilot<\/h2>\n\n\n\n
4 things to try now to increase rental fee transparency<\/h2>\n\n\n\n
1. Simplify your fee structure<\/h3>\n\n\n\n
2. Include a cost calculator<\/h3>\n\n\n\n
3. Focus on accuracy<\/h3>\n\n\n\n
4. Prioritize schema markup<\/h3>\n\n\n\n
Have questions?<\/h2>\n\n\n\n