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

by Rich Vetstein on February 11, 2012 · 13 comments

in Disclosures, Landlord Tenant Law, Leasing, Massachusetts Real Estate Law

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.

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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.”

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