Office of the Attorney General

OAG Files Lawsuit against “a large apartment building in Ward 2, for charging junk fees and hiding the true cost of rent from prospective tenants.”

By Prince Of Petworth

From the Office of the Attorney General (OAG):

“Attorney General Brian L. Schwalb today filed a lawsuit against Mid-America Apartment Communities, Inc., and its subsidiaries Mid-America Apartments, L.P., and Post 1499 Massachusetts, LLC (collectively, “MAA”), the owners and managers of a large apartment building in Ward 2, for charging junk fees and hiding the true cost of rent from prospective tenants.

The Office of the Attorney General (OAG) alleges that MAA overcharged tenants and violated DC law by assessing a variety of illegal fees, including mandatory monthly fees for basic services that, as a matter of law, are already included in rent, like common area maintenance. In its lawsuit, OAG also details how MAA misled tenants searching for housing by advertising deceptively low “starting at” prices that did not include mandatory fees and were therefore not actually available to anyone.

“The rent you see advertised should be the rent you pay,” said Attorney General Schwalb. “MAA has been nickel-and-diming DC tenants with illegal hidden fees and concealing the true price of leasing their apartments. DC housing is already too expensive, and my office is putting an end to practices that prey on tenants and those looking for clear, reliable information when searching for a place to live.”

MAA is a Tennessee-based real estate investment trust that owns and operates more than 300 rental apartment complexes across 16 states and the District of Columbia. In the District, MAA owns and manages a 269-unit apartment building located at 1499 Massachusetts Avenue NW.

District laws, including the Consumer Protection Procedures Act (CPPA) and DC’s Rental Housing Act, ensure tenants are treated fairly and protected from exploitation. The CPPA prohibits a wide range of deceptive practices, including misleading customers and failing to disclose important information about products and services. The District’s rental housing laws cap application and tenant replacement fees at $54. These laws also forbid landlords from charging fees for services they are legally required to provide under the District’s Housing and Property Maintenance Codes. Under the law, landlords cannot charge fees on top of rent to keep homes and common areas safe, secure and in good repair – that obligation is part of a landlord’s duty in exchange for charging rent. DC law also requires landlords to notify tenants about the amount and purpose of any fees tenants may be charged before they submit a housing application.

In its lawsuit, OAG alleges that MAA has violated DC law by:

  • Charging illegal junk fees, including:

    • A “processing fee” of $385 when reviewing a lease application. Through at least April 2024, in addition to charging an application fee, MAA charged tenants an unlawful $385 “processing fee” that served no purpose. MAA never explained this fee to tenants, or how it differed from the application fee.

    • A mandatory monthly “community fee” of $18. MAA has charged DC tenants a monthly “community fee” that supposedly helps cover the building’s property taxes, insurance, and maintenance of common areas like sidewalks and the parking lot. These expenses are for the upkeep of common spaces, which MAA is not permitted to charge on top of rent.

    • A “roommate release fee” of $350 if one roommate moved out before the end of a lease. Under DC law, landlords may charge a tenant replacement fee of $54. However, through at least March 2026, MAA charged a $350 fee and required the remaining roommate to reapply for the unit and pay a new application fee.

  • Deceiving tenants with inaccurately low rent advertisements. Through at least March 2026, MAA deceptively listed apartments for rent at prices that did not include mandatory monthly fees. By excluding these fees, MAA advertised a misleading “starting at” price that no tenant would ever actually be able to lease an apartment for.

  • Hiding the existence of certain fees from prospective tenants. MAA has made it very difficult for prospective tenants to find accurate and complete information about all of the fees the company charges. While MAA has disclosed some fees—like the community fee and amenity fee—on a dedicated fee disclosure page on its website, it has not listed on that page, or on real estate listing websites, other fees it may charge based on the occurrence of certain events, including the roommate release fee and an early lease termination fee. In addition, until late 2025, MAA did not disclose in any way the existence of a monthly utility administration fee until a lease had been signed.

With its lawsuit, OAG is seeking to stop MAA from charging illegal junk fees and misleading prospective tenants about rent prices and permissible fees. OAG is also requesting restitution for tenants along with civil penalties and costs payable to the District.

A copy of the complaint is available here.

This matter is being handled by Assistant Attorneys General Jorge Bonilla Lopez and Marcia Hollingsworth, Special Counsel Zenia Wilson Laws, Deputy Director of the Office of Consumer Protection Emily Holness, and Director Kevin Vermillion.

How to Report Unfair Business Practices

OAG protects DC residents from fraud, exploitation, and deceptive business practices by investigating and mediating consumer complaints, educating residents about their rights, and taking legal action against businesses and individuals that harm residents and break the law. Since January 2023, OAG has obtained nearly $80 million through enforcement actions and settlements on behalf of DC consumers.

To report scams, fraud, or unfair business practices, contact OAG’s Office of Consumer Protection:

Information on Rental Fees and Residential Utility Billing

Updated information on DC laws governing rental fees is here, and updated information on utility billing is available here.”