AB 121 Explained: Why Nevada Landlords Are Rethinking Whether It's Worth Keeping Rentals

The Email That Changed Everything

She opened her inbox on a Tuesday morning. Subject line: URGENT: New Nevada Rental Law Effective Oct 1.​

Six rental units across Clark County. Fifteen years of owning rentals. She'd weathered recessions, eviction moratoriums, and rate hikes. ​

But this email felt different. Words like "maximum total periodic rent," "civil action," and "$250 per violation" jumped off the page. ​

She called her property manager. Then her attorney. Then she did something she'd never seriously considered before. She opened a spreadsheet titled: "Keep, Sell, or Hire Out?" ​

That's the conversation happening in kitchens, offices, and coffee shops across Las Vegas, Henderson, Reno, and every corner of Nevada right now. Nevada Assembly Bill 121 took effect on October 1, 2025, and it's forcing landlords to answer a question many have avoided for years: Is it still worth keeping rental properties? ​

What Nevada Assembly Bill 121 Actually Requires

Nevada Assembly Bill 121, enacted as Chapter 227 of the 2025 legislative session, fundamentally restructures how landlords must disclose rent and fees under NRS 118A. The law mandates operational changes designed to increase transparency and eliminate what housing advocates call "junk fees." news3lv​

The Core Rule: "Maximum Total Periodic Rent"

Under NRS 118A.200 as amended by AB 121, landlords must disclose rent as a single, all-inclusive monthly figure called the "maximum total periodic rent" in every place where rent is listed—in lease agreements, MLS listings, Zillow postings, marketing materials, and social media ads. This single figure must represent the highest amount a tenant could be charged in any given month, combining base rent with all mandatory recurring fees. karsaz-law​

What Must Be Included in Your Single Rent Figure

Every mandatory monthly charge must be rolled into the maximum total periodic rent figure, including: karsaz-law​

• Base rent for the dwelling unit
  

• Pet fees (monthly recurring charges)
  

• Garage or parking fees
  

• Technology fees or portal access fees
  

• Trash and sewer fees
  

• Common area maintenance fees
  

• Any other mandatory monthly charges
  
  

What You Can Bill Separately

AB 121 provides a narrow exception for three specific utilities: water, natural gas, and electricity—and only under strict conditions. A landlord may bill these separately if the tenant cannot contract directly with the utility provider (such as in master-metered buildings) and only if the lease includes an asterisk or reference symbol in at least half the font size of the rent figure, pointing to a same-page disclosure that identifies the utility company name, phone number, and notification that actual utility costs will be billed separately. karsaz-law​

One-time charges (such as move-in fees or one-time pet deposits) are not included in the maximum total periodic rent figure but must still be disclosed in the lease. karsaz-law​

Effective Date & Penalties

AB 121 became effective October 1, 2025. Tenants aggrieved by violations of the single-rent-figure requirement or any charging of rent exceeding the disclosed maximum may bring a civil action in any court of competent jurisdiction. If a tenant prevails, the court must award actual damages, equitable relief, attorney's fees and costs, plus statutory damages of $250 for each violation involving deception. mynews4​

Importantly, if a mandatory monthly fee appears in the lease but was not included in the maximum total periodic rent figure, the law prohibits landlords from requiring the tenant to pay it—rendering it unenforceable. karsaz-law​

The Transparency Shift: Beyond the Single Rent Rule

AB 121 extends well beyond rent figures into payment processing, application fees, and advertising practices across Nevada's rental landscape. clarkcountybar​

Fee-Free Payment Requirement

Section 2 of AB 121 requires every landlord or agent to provide at least one rent payment method that does not require the tenant to pay any processing fee or provide bank account information. The statute expressly permits checks (despite containing bank account information). leg.state​

If a landlord allows tenants to pay via an online portal or website, the landlord cannot charge more than the actual fee imposed by the portal operator, and that fee must be separately identified in the written lease agreement. This prevents landlords from marking up third-party processing fees and ensures tenants know exactly what they're paying for portal convenience. leg.state​

Application Fee Refund Rules

AB 121's Section 4.5 requires landlords to refund application fees—including fees for credit reports and background checks—if the unit is rented to a different prospective tenant and the landlord did not actually conduct the activity for which the fee was collected. Additionally, landlords are prohibited from collecting application, credit, or background check fees for minors (anyone under 18) who are household members of the prospective tenant. leg.state​

How This Impacts MLS Listings & Online Ads

Section 6 of NRS 118A.200 specifies that the single-figure rent requirement applies "in each place where a landlord lists the amount of rent due." Legal analysis confirms this extends beyond lease agreements to all marketing and advertising platforms, including MLS databases, Zillow, Apartments.com, Craigslist, Facebook Marketplace, and printed flyers. The legislative intent behind AB 121—mirroring the vetoed AB 218 (2023)—was specifically amended during the session to include advertising materials, not just lease language. karsaz-law​

How AB 121 Changes Day-to-Day Rental Operations

Compliance with AB 121 requires operational changes that affect lease drafting, payment systems, marketing workflows, and staff training across every rental property in Nevada.​

Lease Template & Software Overhaul

Landlords using property management software platforms like Yardi, AppFolio, or RentManager must update lease templates to calculate and display the single maximum total periodic rent figure in every reference to rent. Renewals, amendments, and mid-term changes require execution of amended leases or at minimum handwritten changes initialed and dated by both parties to reflect the updated maximum total periodic rent.​

Nevada Real Estate Division (NRED) statutes and regulations, combined with Clark County Bar Association guidance, confirm that any mandatory fee appearing only in an addendum—and not included in the single figure—is unenforceable. clarkcountybar​

New Admin Workflows

Property managers must implement systems to offer at least one fee-free payment method that doesn't require bank account disclosure, configure refund workflows for unused application fees, audit all online listings and MLS entries to ensure compliance with single-figure disclosure, and train staff on the complex utility billing exemptions and disclosure requirements.​

What Legal/Industry Pros Report

Attorneys and property management professionals report widespread confusion about what qualifies as a mandatory fee, how to handle fluctuating utilities like trash and sewer (which lack the water/gas/electric exemption), and whether fees not included in the maximum total periodic rent figure can be collected at all. Industry consensus: they cannot. karsaz-law​

[CALLOUT:] "Talk to Your Broker Before Updating Listings."

The Real Cost of AB 121 Compliance

Compliance with AB 121 imposes direct financial costs, indirect time burdens, and risk exposure that landlords must quantify when evaluating their rental property strategies. ​

Quantifying New Costs

AB 121 compliance expenses fall into three categories: karsaz-law​

• Direct costs: Legal review of lease templates ($500–$2,500 depending on portfolio size); property management software updates or subscriptions with AB 121-compliant features ($200–$1,000/year); staff training on new disclosure and refund rules ($300–$1,200 per training cycle)
  
  

• Indirect costs: Administrative labor to audit and update every listing across MLS, Zillow, and other platforms (5–15 hours per property manager); workflow redesign for application fee tracking and refunds (10–20 hours initial setup); ongoing compliance monitoring and lease amendment processing (2–5 hours per lease renewal)
  
  

• Risk costs: Potential civil liability for non-compliance (statutory damages of $250 per deceptive violation plus actual damages, attorney's fees, and costs); inability to collect mandatory fees not properly disclosed in the single figure; competitive disadvantage if listings show higher all-in rent versus competitors who risk non-compliance
  
  

How Market Behavior May Shift

The single-figure transparency requirement may compress advertised rent prices as landlords previously separating fees into addenda now must disclose total monthly costs upfront. This pricing transparency could create competitive pressure, as prospective tenants comparing properties on Zillow or MLS will instantly see the true monthly cost without needing to dig through lease addenda or request clarification. news3lv​

Properties with historically high mandatory fee structures may appear less competitive when the full monthly cost is disclosed in a single figure. karsaz-law​

ROI Erosion & Consolidation

Smaller landlords—particularly those managing one to three units without professional property management—face disproportionate compliance burdens relative to their rental income, potentially eroding returns below market alternatives like REITs or other passive investments. Larger operators and professional management companies benefit from economies of scale, spreading legal and software costs across dozens or hundreds of units.​

Three Paths Forward: Keep, Sell, or Professionally Manage

AB 121 forces landlords to evaluate whether their rental operations remain financially viable and whether alternative strategies better serve their investment goals. nevadacounty4sale​

Scenario 1 — Keep & Self-Manage

This path suits landlords who have time, systems, and legal support to implement AB 121 compliance independently.​

Who it fits: Experienced landlords with fewer than five units; owners who enjoy hands-on property management; investors with existing legal/software infrastructure. nevadacounty4sale​

Benefits: Retain full rental income without management fees; maintain direct tenant relationships and property control; preserve long-term appreciation and equity-building potential.​

Risks: Personal liability for non-compliance; time commitment to master new disclosure and refund requirements; opportunity cost of administrative labor versus professional focus. nevadacounty4sale​

Scenario 2 — Sell the Property

Selling converts equity into liquid capital and eliminates compliance obligations, tenant management, and maintenance burdens. docdraft​

Who should consider: Small landlords whose ROI falls below passive investment alternatives after factoring AB 121 costs; owners nearing retirement seeking to simplify finances; investors frustrated by increasing regulatory complexity. docdraft​

Benefits: Immediate liquidity to deploy into other investments; elimination of landlord liability and compliance risk; no ongoing property maintenance or management obligations .docdraft​

Strategic considerations: Current Las Vegas and Clark County market conditions show rental yields averaging 5.2–8.5% depending on property type, with median home values around $485,762 and strong population growth driving rental demand. Consult a broker about local market timing, potential capital gains tax implications, and whether current buyer demand supports favorable sale terms.​

Scenario 3 — Hire Professional Property Management

Professional management transfers AB 121 compliance responsibilities to licensed experts while preserving rental income and long-term appreciation.​

Who it benefits: Landlords with four or more units seeking to scale operations; out-of-state or busy professionals lacking time for compliance; owners prioritizing passive income over hands-on management.​

Benefits: Full-service compliance handled by licensed property managers with permits under NRS Chapter 645; professional tenant screening, rent collection, and maintenance coordination; reduced personal liability through expert lease drafting and regulatory adherence.​

Fee vs risk/time tradeoff: Management fees typically range 8–10% of monthly rent, but professional managers absorb compliance costs, reduce vacancy through superior marketing, and mitigate legal risks through expert lease administration. For landlords whose time is worth more than the management fee—or whose compliance risks exceed the fee—professional management often enhances net returns.​

Conclusion: Turning AB 121 Compliance Into a Competitive Advantage

Regulatory change creates winners and losers. Landlords who embrace AB 121's transparency requirements position themselves as trustworthy, professional operators in an increasingly competitive Nevada rental market. news3lv​

Clear, upfront disclosure of the maximum total periodic rent builds tenant trust, reduces application dropout, and streamlines lease negotiations. Fee-free payment methods and standardized refund policies enhance tenant experience and reduce friction. Properties marketed with full compliance stand out to quality tenants seeking honest, reliable landlords. news3lv​

The decision framework remains: evaluate your compliance costs, quantify your ROI after factoring AB 121 requirements, and choose the path that aligns with your financial goals—whether that's keeping and self-managing, selling and redeploying capital, or hiring professional management to preserve passive income. nevadacounty4sale​

Curious how AB 121 applies to your Las Vegas or Clark County rental? Let's explore your options together.

About the Author

Gavin Brenkus | Lead Agent & Director of Lead Generation

A three-time recipient of the prestigious "Who's Who Under 40" award from Las Vegas REALTORS®, Gavin Brenkus has firmly established himself as one of the most accomplished real estate professionals in Southern Nevada. As a Lead Agent and the Director of Lead Generation for The Brenkus Team, he is an integral part of a family-owned legacy that has achieved nearly $2 billion in sales volume and successfully closed over 8,000 transactions.

For Gavin, real estate is more than a profession—it's a lifelong passion. Immersed in the industry from the age of 16 and licensed before graduating high school, he offers a rare depth of market knowledge that combines youthful energy with decades of absorbed expertise.

His professional philosophy is built on a foundation of listening. Gavin is dedicated to fully understanding the unique wants and concerns of his clients, allowing him to curate a tailored and seamless experience from start to finish. This client-first approach ensures that everyone he works with feels heard, valued, and expertly guided.

Sources

Disclaimer: This article is for educational purposes only and is not legal advice. Consult your broker or an attorney for guidance specific to your property and circumstances.

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