Twin Cities landlord settles for 5M over exorbitant utility fees, retained deposits

Investment Property Group will pay over $5 million to settle claims of illegal utility fees and unreturned security deposits affecting more than 4,000 renters in the Twin Cities. Minnesota Attorney General Keith Ellison stated that tenants faced “exorbitant” utility costs that sometimes exceeded $200 per month, often assessed months after they began renting. The settlement mandates the property group to contribute $1. 8 million to a restitution fund and forgive up to $3. 7 million in tenant debt.

Additionally, about 650 households will receive $350 in rent credits. The company must change lease agreements to comply with state laws regarding utility charges and security deposits. It also agreed to stop eviction actions based on unpaid utility bills. This resolution follows growing criticism from housing advocates regarding poor living conditions in the complexes. Recent actions by tenants included protests demanding better management practices in light of ongoing issues with pest control and sanitation.