Apartment “Amenity Use Fee” Ruled Unlawful In Class Action Against Archstone Properties

Federal Judge Rules $475 Apartment Amenity Use Fee Violates Massachusetts Security Deposit Law

Some large apartment owners, such as Archstone Properties, have been charging tenants a separate “amenity use fee” for use of the community pool, workout room, media center and other amenities, or a separate “move-in” fee or pet fee. The fees can be rather hefty; several hundred dollars in many cases. Well, a federal judge recently struck down these fees as illegal under the Massachusetts Security Deposit Law. What’s more, the judge has allowed a class action to proceed against Archstone Reading apartment complex which may be on the hook for thousands if not millions in refunds to tenants. Other apartment complexes may have legal exposure if they used similar amenity use fees.

Massachusetts Amenity Fee Class Action

The case is Hermida v. Archstone Properties (D. Mass. Nov. 29, 2011). The case arose out of a $475 amenity use fee charged by Archstone Properties in their Reading, Massachusetts apartment complex. The judge ruled that under Massachusetts law, landlords can only charge tenants for: (1) first month’s rent, (2) last month’s rent, (3) a security deposit, and (4) a key installation fee. The additional amenity use fee is illegal, Judge Young ruled, if it is required, not optional, and charged up front, i.e, a condition to renting. Judge Young also approved the case for class action status.

The class action attorney handling the case, Matthew Fogelman, Esq., is also investigating whether other apartment complexes and landlords have charged similar amenity use fees, move in fees and/or pet fees, for potential class actions against those apartment complexes. If you were ever charged a separate amenity use fee, move-in fee, or pet fee as part of your rental lease, please email me at info@vetsteinlawgroup.com and I will put you in contact with the case attorney. You could be entitled to a refund of several hundred dollars and possibly additional compensation.

Alert: Property managers are asking tenants to sign releases to get a refund of their amenity use fees. DO NOT SIGN ANY RELEASE OR WAIVER FORM UNTIL YOU HAVE CONSULTED WITH AN ATTORNEY. YOU COULD BE WAIVING YOUR RIGHT TO COLLECT THE MAXIMUM AMOUNT OF COMPENSATION.

_________________________________________________________

Richard D. Vetstein, Esq. is an experienced Massachusetts Real Estate Litigation Attorney who has litigated hundreds of cases in the Massachusetts Land and Superior Courts. For further information you can contact him at info@vetsteinlawgroup.com.

This post may be considered “attorney advertising.”

Tagged as: apartment amenity use fee, featured, Hermida v. Archstone Properties, Illegal Massachusetts apartment fees, Massachusetts amenity fee, Massachusetts amenity fee class action, Massachusetts apartment illegal fees, Massachusetts class action apartment fees, Massachusetts illegal amenity use fee, Matthew Fogelman, Richard Vetstein

Trishkilcullen

It is also a choice to rent to people with pets.
Pingback: Can Massachusetts Landlords Legally Require That Tenants Buy Renter’s Insurance? | The Massachusetts Real Estate Law Blog
Jeffrey Parkhurst

Mr Vetstein, as a realtor I was aware of the Standard, First, Last, Security and Re-Key fee. However the Pet Fee is a new one I wasnt aware of. This means, the land lord cant charge an initial fee at lease inception but can however charge a monthly fee and can also increase the security deposit from a standard Securty Fee to a Pet Occupied Security Fee of a higher amount, correct? Thank you JP
http://www.massrealestatelawblog.com Richard Vetstein

Jeff, for security deposits, landlords cannot charge more than equivalent to a month’s rent. So if the rent is $1200/month, the security deposit cannot be above $1200.
Luvhappy34

Try living at an amico property monthly 40 per pet, now a monthly parking fee which we did not have until last year. In fact all aimco properties charge parking as of 2010. They also require insurance in the amount of 50k for any damage you or a guest incurs while visiting. This insurance you can only buy from one carrier ( who aimco recommends smells of a kickback). This was newly required as of last years renewals cost 14 extra each month and is not renters insurance. Aimco REIT should not get any federal breaks their rents are sky high even for mold centipede basement apartments. Wish someone would investigate them.