M&R is investigating complaints by Washington, D.C. renters that landlords are engaging in two deceptive trade practices: (1) failing to disclose “junk fees” in rental applications and (2) failing to return security deposits with interest.
Failing to Disclose “Junk Fees” in Rental Applications.
M&R is investigating reports where landlords failed to disclose hidden “junk fees” to tenants on their rental applications.
What is a “junk fee?”
These undisclosed charges may include monthly billing “service fees,” utility-related add-ons, or other recurring fees not listed at the time of application. In many cases, tenants are required to pay a non-refundable rental application fee upfront, under the impression that the listed rent is the full amount. However, they later discover—often only after being presented with a lease—that their actual monthly rent is significantly higher due to these hidden charges. This deceptive “bait-and-switch” practice may violate D.C. consumer protection laws.
Failing to Return Security Deposits with Interest.
M&R is investigating landlords who have failed to return interest accrued on security deposits to D.C. renters.
How does interest accrue on a security deposit?
Pursuant to D.C. Municipal Regulations, landlords who collect security deposits from D.C. renters must place them in an interest-bearing escrow account. When a tenant ends a tenancy of 12 months or more, landlords generally are required to return the security deposit to the tenant—with interest. However, landlords may fail to return the interest accrued on security deposits.
You may have a legal claim.
If you have experienced any of these issues, you may have a legal claim, and we want to hear from you. Contact us by filling out the survey below, emailing [email protected], or calling us directly at (202) 470-3520 for a free consultation.