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Judge says Equity's tenant fees illegal [Boston Herald :: ]
[August 29, 2014]

Judge says Equity's tenant fees illegal [Boston Herald :: ]


(Boston Herald (MA) Via Acquire Media NewsEdge) Aug. 29--A federal judge this week dealt a blow to apartment giant Equity Residential, saying the upfront, nonrefundable fees it has charged Massachusetts tenants -- including "amenity," "move-in," application and pet fees -- are illegal because they violate the state's security deposit law.



"The judge found ... the security deposit statute limits to certain enumerated charges what the landlord can charge (before or) at the commencement of the tenancy, and those are first month's rent, last month's rent, a security deposit and a charge for a lock and key installation," said David Pastor, a Boston attorney representing three former Equity tenants.

U.S. District Court Judge Rya Zobel also ruled that the case can be consolidated with another federal lawsuit pending against Equity and granted it class-action status. The potential number of Massachusetts tenants impacted is unclear. Chicago's Equity leases some 31 apartment complexes in the Bay State with about 6,680 units. Equity declined comment.


Brian and Kim Perry, former tenants at Longview Place in Waltham, and Cheryl Miller, who lived at Emerson Place in Boston, sued in 2012. The Perrys paid Equity an upfront $100 application fee and a $99 amenity or move-in fee, while Miller paid $50 application and $500 amenity fees, according to the lawsuit. Equity also allegedly charged a $250 pet fee and $500 "community" fee.

The next step in the case is a Sept. 30 status conference. Pastor expects a short trial to determine damages.

Zobel denied a request to block Equity from charging other Massachusetts tenants the upfront fees, saying an injunction can be granted only if there is no adequate legal remedy. While that means Equity could keep charging the fees, Pastor doubts it will.

"Equity will be smart enough to realize that they declared these fees unlawful, and if they continue to charge them, someone else may sue them," he said.

The suit follows a similar 2010 case won by a Reading couple against the former Archstone Apartments, a Colorado-based apartment giant since purchased by Equity Residential, over a $475 upfront amenity fee. A settlement last year allowed for an up to $150,000 fund for tenants and required Archstone to pay the couple $5,000 and stop charging the fees.

The state's security deposit law makes very clear what landlords can charge tenants, said Wakefield real estate attorney Richard Sullivan. "It's a very brutally strict statute, and landlords get in trouble all the time," he said. "Equity ... should've known better." ___ (c)2014 the Boston Herald Visit the Boston Herald at www.bostonherald.com Distributed by MCT Information Services

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