With rent in D.C. hitting record high rates, some tenants are holding property managers accountable for hidden fees and convoluted lease agreements.
Tenants at five apartment buildings owned and managed by Brookfield Properties are raising the alarm about hidden common area and utility fees and demanding more transparency in rental agreements. In June of 2024, residents formed Brookfield DC Tenants, a group that advocates for fair practices and affordable rent for all residents.
Hidden fees, which are frequent in D.C. apartment buildings, can be especially burdensome for low-income residents who may rely on subsidies or vouchers to afford housing. In 2023, one in 10 D.C. residents were housing insecure, according to a study done by the Urban Institute.
Brookfield DC Tenants, which is made up of over 130 members, unites concerned residents across all of Brookfield’s apartment complexes in the District, including The Guild, Vela, Twelve12, Foundry Lofts, and Estate, to take “collective action” against reduced services, price hikes, breaches of contract and excessive utility and common area charges.
Norman Probst, a tenant of the Guild apartments in Navy Yard, paid a $250 holding fee for his apartment, which he said never received a refund for. In addition, he said he’s been charged for utilities used in the common area, which were not originally listed in his leasing contract.
“I’m low income,” Probst said. “I have a voucher. I feel like I’m paying for something outside of my apartment. I don’t know what I’m paying for.”
Probst and other tenants say the hidden fees have not only had a monetary toll but a mental one.
“I started having anxiety attacks about my bills,” Probst said.
To advocate for tenants, the group holds monthly meetings, runs campaigns based on specified concerns such as common area fees, and holds negotiations with Brookfield Properties managers as a way to pressure the company to respond to collective tenant concerns.
In February, Brookfield DC Tenants announced Probst filed a class action complaint against Brookfield Properties. The suit, which is currently going through the D.C. Superior Court, alleges property managers charged tenants illegal application fees, common area fees, and a slew of other undisclosed fees that are “unlawful, unfair, and/or deceptive under the D.C. Consumer Protections Procedure Act.
”The D.C. Consumer Protection Procedure Act protects consumers from business misconduct, both in commercial and real estate transactions. According to the complaint, in Probst’s case, more than $100 in utility fees were added to his monthly bill, which was already upward of $2,500, although his voucher covered most of the rent.
Other tenants say Probst’s experience wasn’t unique. Cruz Ramon, who moved to the Guild Apartments three months ago from Spain, said common area fees were never listed in his initial contract, but showed up on his monthly bills.
“It was kind of surprising to see common area fees,” Ramon said, although he noted he appreciates the amount of spaces available for Guild residents’ use.
Despite multiple attempts to contact the Brookfield management office, Probst said he has received no response to his complaints. Brookfield did not respond to Street Sense’s request for comment.
Another tenant, who requested to remain anonymous due to legal concerns, works as a leasing attorney and has used their background to advocate for themselves and their neighbors. The tenant said they were threatened with eviction when their rent payment was delayed by a few months, due to waiting on a paycheck to come in.
“Brookfield is a private equity company, and so, all the people in our leasing office are really, like, powerless… They’re not people that are capable of making critical decisions,” the tenant said. “So we have no one with authority that we are able to contact or reach out to or talk to.”
This is not the first time Brookfield has faced legal repercussions and complaints from tenants. In 2023, Forbes reported Brookfield defaulted on its second portfolio of mortgages, worth $161.4 million. Brookfield was forced to default as its monthly mortgage rates on properties went up and occupancy rates went down more than 70% from 2018.
Brookfield is far from the only property management company to charge hidden fees. A 2024 investigation by Washington City Paper found more than 20 buildings in the city, including some managed by Brookfield, charged hidden or misleading fees. In the fall of 2024, the hidden utility fees at multiple buildings across the District caught city lawmakers’ attention, and Ward 6 Councilmember Charles Allen introduced legislation to prohibit charging tenants separately for common areas. Although the legislation did not pass, Allen reintroduced it last month, once again calling for transparent price listings on leasing agreements.
“District residents in large residential buildings are getting bilked by large, national corporations looking to squeeze profits without providing any extra value,” a press release from Feb. 13 stated.
For residents who are dissatisfied with Brookfield services, moving is not always an option. According to the DC Fiscal Policy Institute, 77% of those who need affordable housing in D.C. are extremely low-income, with only 39% of apartments available to those who fall into this category.
Xavier Taylor, who has resided at the Guild apartments for four years, said that although hidden price hikes are present, he stays because the Brookfield properties “would probably be one of the more affordable areas to live on limited income.”
Affordable or not, as long as the hidden fees continue to persist, the Brookfield Tenants group has vowed to keep fighting.
“I love my apartment,” Probst said. “I love my neighbors. I just want a change in illegal fees. It’s not right, it’s not fair.”
