When Almeida moved into her Boston apartment, she expected to pay rent and possibly some move-in fees. But what she didn’t anticipate were charges like $25 for a key lock change, $286 for a ‘scheduler move-in fee,’ and $65 to amend her lease. These fees, on top of her $1,200 monthly rent, soon became unmanageable. Then came the legal fees — $2,000 in total over seven years — from her landlord, AvalonBay, after eviction attempts that never reached a judge.

Legal Fees Charged Without Court Judgment

Almeida is now a plaintiff in a federal lawsuit against AvalonBay and Greystar, two major real estate corporations. The lawsuits claim that charging renters for legal fees when eviction cases are dismissed violates Massachusetts state law. According to the law, legal fees can only be charged to the opposing party if a court issues a judgment and reviews the fees.

Despite this, some tenants say they are still being charged legal fees even when their cases are dismissed. In many housing courts, judges encourage tenants and landlords to negotiate directly with lawyers outside the courtroom to reduce pressure on eviction dockets. However, tenants argue that this creates a power imbalance, as they are often not represented by legal counsel and may not understand the complexities of housing law.

‘At a time when so many tenants are rent-burdened and costs continue to climb, these fees can be the straw that breaks the camel’s back and lead directly to displacement,’ said Courtney Libon, a housing attorney with the Greater Boston Legal Services. She represents Almeida in the lawsuits against AvalonBay and Greystar.

Disputed Legal Practices and Court Responses

Representatives for AvalonBay and Greystar did not respond to multiple requests for comment. In court filings, both companies denied the legal basis of the claims and requested the lawsuits be dismissed. In the Greystar case, the court last year dismissed one claim but allowed two others to proceed. Greystar also submitted counterclaims against the tenant who filed the lawsuit.

AvalonBay has moved to dismiss one claim in the case, arguing that Almeida had not pursued all legal remedies. ‘Almeida takes [a] simple dispute and inflates it into something much more complicated,’ AvalonBay said in a filing.

Shaun Cordeiro, a former tenant of a Greystar-owned building in East Boston, was charged nearly $700 in legal fees after facing eviction. He was told by a Greystar lawyer that the case would be dismissed if he paid back rent and that he would not have to pay the fees. But after paying the back rent, Cordeiro found the legal fees still on his account. He eventually paid them in 2023, only to see another fee added. After protesting, the fee was removed.

‘At this point, I’m selling stuff — clothes, gifts I had been given — to pay this money,’ Cordeiro said. He later learned of a class action lawsuit against Greystar in North Carolina, where the company agreed to pay over $4.5 million to settle the case. Inspired, he encouraged the lawyers in the Boston case to file a similar lawsuit against Greystar in Massachusetts.

Legislative Efforts to Address the Issue

Massachusetts State Senator Jamie Eldridge filed legislation last year that would clarify legal fees can only be charged to the opposing party after a case has gone to court, one party has won, and a judge has reviewed the fees. The legislation would also restrict other fees a renter can be charged, going beyond the new Massachusetts law that bans broker’s fees.

Mary Muirhead, a retired Massachusetts housing court judge who is not involved in either lawsuit, said including legal fees on a tenant’s ledger should be understood as an accounting practice. ‘Landlords are simply tallying up costs associated with a tenant’s account, but they would not have to pay them unless ordered by a court,’ she said. ‘I think we’ve got a tempest in a teapot here and it could be resolved more easily.’

Almeida and Cordeiro argue that having a judge acknowledge the practice is illegal is important for other tenants who may face similar fees. ‘I don’t want anyone to ever go through what I went through,’ Almeida said. ‘Being a vulnerable low-income tenant, things are already tough as they are. I just want the practice to stop.’

The lawsuits are asking the court to clarify that it is illegal to charge the opposing party legal fees without a judgment from a court and a judge’s review. The cases are still ongoing, with no clear resolution in sight. Meanwhile, the legislation filed by Senator Eldridge could provide a broader legal framework to prevent similar practices in the future.