Ann Arbor renters charged $6K in waitlist fees for apartments
ANN ARBOR, Mich. (CBS DETROIT) - Renters in Ann Arbor are reporting being slammed with excessively high fees to get in line to rent apartments.
In some cases, local property management companies Campus Management Inc. and Prime Student Housing charged individuals more than $6,000 to be put on standby for a lease.
"I've seen a case of a fee that was $6,745 just for a two-bedroom apartment,' said Ann Arbor Tenants Union member Nathan Kim. "And, just to be clear, giving these fees to the landlord doesn't even guarantee you get the unit."
The case he referenced was what he said Campus Management Inc. charged a student at the University of Michigan to reserve a unit, which was not binding.
Many renters encountering the exorbitant fees are U-M students, like junior Paige Marsman.
"It can be really stressful to do a housing search," she said. "I know from experience. You have to be really careful because it feels like a scam. And sometimes, maybe it is. I wish so much better for the students of Ann Arbor. It takes a lot to be here, and I wish it was better for everybody."
Some Ann Arbor City Councilmembers are calling the practice "predatory" and are promising action to eliminate a landlord's ability to charge money to be on rental housing waitlists.
"The Renter's Commission is currently working on drafting legislation that would change our ordinances so that this would no longer be allowed in the city," said city councilmember Erica Briggs.
Christopher J. Heaton, co-owner of Campus Management, sent the following statement to CBS News Detroit:
"Our company does not have waitlists or fees for being on a waitlist as has been suggested in local media. We, and numerous other local companies, offer "Options to Lease" when requested by thousands of potential student tenants determined to secure housing in the Fall for the next academic year. If optionees do not get their desired housing because of a renewal, a full and prompt refund is made. If their desired housing is available because of non-renewal, and they sign a lease with us, all payments are credited to their account. Along the way, we make sure to observe all timelines imposed by local ordinances."
Still, Kim said students don't always get a refund.
"Firstly, they're not getting all of it back," he said. "The landlord keeps a lot of it. And secondly, it is just irresponsible to ask renters, many of whom are students, to put down, essentially, maybe over $10,000 in these kinds of fees."
"Imagine trying to do this at a number of different apartments," said councilmember Briggs. "And it's not feasible for students; it's not realistic for working professionals or retirees ... 56% of Ann Arbor residents rent, so this is really predatory behavior."
