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

More than 4,000 residents of Twin Cities apartment complexes who overpaid for utilities or never got security deposits back will be eligible for refunds and debt relief, according to the attorney general’s office.

Investment Property Group, the Park City, Utah-based manager of 11 apartment complexes scattered across south Minneapolis and area suburbs, will pay more than $5 million to settle the state’s claims of violating landlord and tenant laws.

Attorney General Keith Ellison said in a statement Wednesday the settlement offers resolution to renters who were surprised by “illegal mid-lease charges” and “waited in vain for security deposits to be returned.”

According to the Attorney General, tenants were met with “exorbitant” utility costs that reached higher than $200 per month. Those costs were often tacked on months after a person began renting. For buildings with only one electric meter, tenants split the total cost instead of paying proportionally based on use.

Eviction proceedings were started against some residents who fell behind on the bills.

The property group admitted no wrongdoing in settling the case. Attempts to reach its owners for comment Wednesday were unsuccessful.

Under the terms of the agreement, Investment Property Group will pay $1.8 million into a restitution fund and forgive up to $3.7 million in debt. About 650 households will also receive a $350 rent credit, according to the attorney general’s office.

The landlord has been a target of criticism from area housing advocates and tenants in recent months. Some have accused the managers of pest control issues, poor trash cleanup and slow response to important repairs.

In March, frustrated renters marched into the offices of the Blaisdell Apartments, at 2200 Blaisdell Ave. in south Minneapolis, calling on managers to do better. A 20-year-old resident, who has an infant at home, said she got a cat to help handle her building’s pervasive rat problem.