Fayetteville’s rental fee cap faces legal hurdles

FAYETTEVILLE, Ark. (UATV) – Renting a home in Fayetteville can be expensive, and soon, application fees could climb even higher.

For renters like Jacob Lafitte, the uncertainty is frustrating.

“It just makes you feel like you’re kind of stuck… you could pay 100 or more dollars and not even get the house you want,” Lafitte said.

In an effort to help renters, the Fayetteville City Council passed an ordinance capping rental application and background check fees at $40—a move designed to ease financial burdens.

“We ran an ordinance that was passed in October of last year that would cap background and application fees to help with that burdensome outlay that folks have every time,” a city official said.

The new cap, which will take effect on March 31, 2025, requires landlords to refund background check fees if the checks aren’t performed. It also limits application fees to $20 if no background check is included.

However, the ordinance may not be enforceable. Arkansas state law prohibits local governments from regulating rent-related costs, which means a legal battle could be imminent.

State Sen. Clint Penzo (R-Springdale) has introduced a bill to block cities from setting limits on application fees entirely.

“Unfortunately, there are some incredibly predatory practices and some lack of consumer protections around renters,” Penzo said.

For Fayetteville tenants, the cost of these fees cuts into everyday necessities.

“What was normally $40 can now double or triple, and that’s money that could be put towards something like rent or groceries,” one renter said.

For now, the ordinance remains in place. But whether it will take effect—or be overturned—is a decision that rests with state and city leaders.