As rental costs continue to rise across Tennessee, some Nashville residents say the use of third-party billing companies is adding to housing affordability challenges and creating confusion over charges and payments.
Nashville’s average rent is more than $1,650 per month as of February, slightly higher than the national average.
Janelle Burns, a Nashville resident, said her base rent started at about $1,300, but after additional fees billed through the third-party company Conservice, her monthly housing costs are now more than $1,600. She noted that figure does not include electricity, which is billed separately. Burns lives on a tight budget.
"I don't qualify for a three-bedroom, and the three-bedroom, I think it's 15-something," she said. "It's cheaper than $1,610, but I'm paying more for my two-bedroom than a three-bedroom would be."
Conservice generates monthly statements and generates bills for certain utilities such as water, sewer and trash. Monthly costs can also include a service fee. According to the National Consumer Law Center, many landlords add harmful "junk fees" that people must pay to secure and maintain housing.
Elizabeth Leiserson, project director at the Legal Aid Society of Middle Tennessee and the Cumberlands, said third‑party utility bills can hit low‑income tenants hardest, where an extra hundred or two a month can strain budgets. She said Conservice agreements often list vague fees and complicated formulas, making it tough for renters to know what they actually owe.
"From a tenants' rights perspective, my concern with all of these various forms of utility addenda is the lack of transparency," she said. "It's really important to most people, virtually everyone, I would guess, when you're signing your lease, how much your rent is going to be."
Leiserson said she is not aware of any laws or pending bills regulating third-party utility billing. She said there are caps, such as a 10% ceiling on late rent fees, but utility charges remain largely unchecked.
Nashville resident Shakendra Boggs said a dispute over her Conservice utility bill led to confusion and higher costs. She worked with the Legal Aid Society in 2023 to challenge charges from the company. Boggs said her lease didn’t clearly list water charges.
"I didn't even have a washer or dryer, and I was barely home," she said. "I literally went home after working, going straight to sleep, and then I had a baby at the time, so I didn't use a lot of water. So why am I being billed so much for water? They were saying because it's being split so somebody else is using it a lot, I could be responsible for their bill, basically, which is insane."
Boggs said Conservice emailed her a statement listing rent and utility charges, even though the same information was already provided by the landlord. Further complicating things, Conservice managed the bill, but payments could only be made to the landlord.
Source: Public News Service
