A new case interpreted a law limiting the amount a landlord
may collect from a residential tenant. Under G.L. ch. 186 §15B,
landlords are limited to collecting first month’s rent, last month’s
rent, a security deposit and a small key deposit from the tenant.
The amount of the last month’s rent and of the security deposit
cannot be higher than the first month’s rent, so effectively
landlords are limited to collecting three times the first month’s
rent. In Hermida v. Archstone, the apartment complex charged a
$475 user fee for the pool, gym and grill areas shared by all the
residents. 826 F.Supp.2d 380. Although the landlord collected this
fee at the start of the tenancy along with the first month’s rent, no
last month’s rent or security deposit was requested by the landlord
or paid by the tenants, so the total collected from the tenants was
less than that allowed under §15B. Id. at 382. However, because
the user fee or amenity fee was not specifically allowed under the
statute, the court ruled that the landlord violated both the security
deposit law and the consumer protection law. Id.
Other cases have interpreted different charges under this statute.
One held that a tenant cannot be charged an application fee once
the application is accepted – charging at the time of application
but prior to offering the rental seems to be acceptable. Dolben
Co. v. Friedmann, 2008 Mass. App. Div. 1 (unreported). Another
case held that charging a fee for the remote garage door opener
separate from and in addition to the security deposit violated the
statute. Carter v. Seto, 2005 Mass. App. Div. 62 (unreported).
These cases have wider ramifications for standard lease provisions,
such as pet fees and requirements that tenants prepay insurance
costs. For now, it would appear that any fees other than those
strictly permitted by the statute are invalid. Therefore, landlords
would be better off to include these costs of doing business within
the rent structure and recoup them in that manner. Landlords
are subject to triple damages and liability for the tenant’s attorney
fees if the security deposit law is violated. Consequently, landlords
must make sure to comply with all regulations regarding security
and last month’s rent deposits. The law is complicated, and noncompliance with even the smallest detail can subject a landlord
to triple damages. Please call if you would like assistance with
understanding and adhering to the rules or need the proper forms
to ensure compliance.
