A Colorado law that keeps landlords and rental companies from charging "junk fees" to tenants took effect on January 1st.
Rebekah Boehner lives at the Vue at Spring Creek apartments in Southeast Colorado Springs. She says once the law took effect, about $20 worth of fees were taken off her monthly bill. However, when the complex came to her with a renewal offer, her rent for a nine-month lease went up by $292. Boehner tells News5 that she believes this increase is in response to fees lost from the new state law.
In an emailed response, the Vue at Spring Creek denies this.
“We believe our units are competitively and fairly priced. Every apartment home is priced individually, and many factors are considered in determining base rent, including current market conditions, unit-specific features, and ongoing promotions. Our leases and renewal notices report all mandatory fees, which are separate from base rent, and allow residents to see their total monthly leasing price. Rent-setting decisions are based on these factors and are not tied to the removal of specific fees under Colorado House Bill 1090 or prior regulatory matters."
While pricing is evaluated at the individual property and unit level, our approach to rent-setting is consistent across our communities. We send out renewal notices well in advance so that residents have an opportunity to compare with neighboring communities to see the value we offer. We remain committed to transparent pricing and working directly with residents to review their options.”
Robert Schifferdecker is a real estate attorney with Robinson & Henry. He does not represent Boehner or her property management. Schifferdecker says it would be hard to prove that this increase in rent was not justified.
“Rent is going up across the board, it’s going to go up every year," Schifferdecker said. "It’s going to be hard for them [to prove], but if there’s a significant increase over similar sized apartments in the area, that may be a good indication that these people are trying to skirt around this new law.”
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Boehner wonders if a recent lawsuit played a part too, which the Vue at Spring Creek also denies.
The Vue at Spring Creek is owned by Greystar. According to the Federal Trade Commission (FTC), in December, Greystar agreed to pay a $24 million settlement. This includes $23 million to the FTC and $1 million to the State of Colorado. The lawsuit claimed Greystar misrepresented the true cost of renting a Greystar property by displaying deceptively low rental prices and excluding several fees. Greystar is now required to clearly display these totals, which the Vue at Spring Creek does.
News5 asked Greystar if all of its Colorado properties could expect an increase in rent and if Boehner's higher renewal offer is in response to money lost from the junk fee law or Greystar's $24 million settlement. We did not receive a response.
Email Senior Reporter Meghan Glova at meghan.glova@koaa.com.
Follow Meghan Glova KOAA on Facebook.
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