Councilmember Allen: “The rent is the rent. No more surprise fees.”

FOR IMMEDIATE RELEASE
Feb. 13, 2025
Contact: Erik Salmi
202-724-8072

Today, DC Councilmember Charles Allen (Ward 6) is re-introducing legislation to ban hidden common area utility fees, which have become pervasive across the District. These charges get tacked onto a tenant’s monthly rent but are not disclosed at the time a resident signs their lease.

These fees can vary wildly from month to month and add hundreds of dollars in unexpected costs – often with little or no transparency.

“District residents in large residential buildings are getting bilked by large, national corporations looking to squeeze profits without providing any extra value. These hidden and exorbitant fees on tenants can add hundreds more to their monthly bills and are often a surprise. The rent is the rent, and when you sign a lease, every resident across the District should have a clear expectation of what that amount is going to be each and every month,” Councilmember Allen said. “My office has heard from so many residents seeing these fees. Common sense says the rent already covers the cost of maintaining a building and its shared utilities, but we’re going to make that clear in the law.”

Councilmember Allen’s office has seen cases of tenants having to pay up to an additional $400 per month on top of their base rent and their individual unit’s utilities for the utility charges incurred by the building for its common spaces – spaces like a hallway, gym, or conference room. These fees have been imposed on tenants regardless of whether the tenant used or accessed those common areas and are notably in addition to their own unit’s utility charges. The practice has the effect of artificially deflating advertised rents to allow buildings to appear more competitive to tenants, only to surprise residents after they move in.

This is an issue nationally. In January, the Federal Trade Commission filed a lawsuit against Greystar Real Estate Partners (New York Times), accusing it of charging tenants across the country, including those in DC, hundreds of millions of dollars in hidden fees. Here in the District, there is active litigation (Hettinger v. Bozzuto Management Company) to determine whether this practice may run afoul of existing law.

The bill, entitled the Fair Housing Practices Amendment Act of 2025, will make this practice clearly prohibited, and require housing providers to include the costs of a building's operation in their rental calculations, giving current tenants predictability and prospective tenants clarity on how much it will cost to live in the building. It would not change the right of management to charge additional fees for access to amenities or services, like a pool or gym.

The bill also fixes another constituent problem brought to Councilmember Allen by requiring housing providers to notify residents of any remaining balances associated with their apartment within 45 days after moving out. Residents had shared instances of management companies sending allegedly unpaid amounts owed by a tenant to a debt collector without notifying or providing the tenant with an opportunity to pay. The housing provider would have to disclose what’s being assessed and why and obtain evidence that the tenant was served with the notification at least 60 days prior to sending the unpaid amount to a debt collector.

The bill is co-introduced by Councilmembers Anita Bonds, Christina Henderson, Janeese Lewis George, Zachary Parker, Brianne Nadeau, Brooke Pinto, and Matthew Frumin.