Surprise internet fees cause unexpected rent increase for Las Vegas tenants

LAS VEGAS (KTNV) — An unwelcome surprise is hitting residents of several local apartment complexes.

They've recently learned about new and unexpected charges for internet services they already pay for, leaving some scrambling to cover the increased costs.

WATCH | Darcy Spears' investigation into this apartment complex reveals that the issue is not just happening at one...

"We don't know what the deal is. We're just told that June 1, it's going to be happening."

What's happening at Loretta Byers' apartment complex will mean more money coming out of wallets already stretched thin.

Darcy Spears: Do you need this?

Loretta Byers: No!

Spears: Do you want this?

Byers: No!

But she and all the other tenants at Intrigue Apartments on Vegas Drive and Decatur Boulevard have to pay a new $75-a-month tech package fee for internet service from Cox, even though—in Loretta's case—the lease she recently signed says otherwise.

I asked, "They actually want you to sign an addendum to the lease that you just signed to agree to something that you don't want?"

"Right," Byers responded, explaining that she and her husband renewed their lease in February and the contract—which she shared with 13 Investigates—says "Internet to your dwelling will be paid by you... directly to the utility service provider."

But according to a letter dated April 29, Intrigue is changing the terms for all tenants by adding the tech fee on top of current rent, payable to the landlord. The letter says the fee will be part of "standard lease obligations."

"It's being forced," said Byers. "Take it, or leave. And nobody wants to break their lease on purpose. I know I'm not going to. But I don't want to feel that I'm going to be forced to do something because they want more money coming in."

For low-income residents and seniors on fixed incomes, an extra $75 a month could be too much. Byers says she knows one neighbor who simply can't afford it.

13 Investigates asked Cox how it works and they sent a statement, saying:

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That means the landlord could use the monthly internet fees as another way to make extra profit, which is what Byers thinks the deal is.

"More money. That's what I believe. I really think it's the greenbacks," she said.

Intrigue isn't the only apartment complex doing this.

We've also heard from tenants at Tides on Twain about new a bulk internet fee there: $65 a month for service from Cox.

One Tides on Twain resident wrote to "Darcy, what's the deal?" saying, "Something has got to be done to stop these unscrupulous landlords from stealing from seniors on fixed incomes who cannot afford to be treated like this." That tenant currently has a low-cost internet plan from Cox ConnectAssist, which is $30 a month. Her fee will more than double with the new plan.

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The letter sent to residents on May 14 says the change is coming June 1, "Enrollment is mandatory," and they're asked to come into the complex office to "sign a lease addendum."

But... things changed after 13 Investigates reached out to both complex management companies to ask what's the deal?

On behalf of Tides on Twain, FPI Management said their letter contained multiple errors and that the new internet fee will only apply when leases are renewed or new tenants move in. They call it a benefit and say they'll be sending new letters to residents to update and clarify.

Intrigue's management company, Advanced Management Group, said their notice to residents was flawed too (full statement below). They say they'll be correcting their correspondence to tell tenants the internet program is only applicable during lease renewals or at move-in for new residents, is "entirely optional," and won't apply to residents receiving free internet through a funded assistance program.

Both complexes see the bulk internet packages as a way to offer a more affordable alternative to current internet rates in Las Vegas.

Assemblymember Venicia Considine views it differently.

"I believe it's predatory. I also believe it's deceptive," Asm. Considine said. "The apartment complex is just telling all their residents its coming because there's no law to stop it."

Considine is close to changing that with Assembly Bill 121, which has passed both houses and is awaiting Gov. Lombardo's signature.

"Oh, that's wonderful!" Byers exclaimed. "That would be magnificent. If we could get the governor on it, that would be fantastic!"

AB 121 would outlaw surprise charges, junk fees, and require more transparency in rental contracts.

"It is not unusual for folks now to contact me and say, 'Hey, I thought my rent was going to be $1,250, that's what was advertised. When I sat down to sign the lease after I put down my non-refundable credit and application fees, I found out that my 52-page lease has addendums that charge for trash, sewer, water, extra water, entertainment packages, internet packages, luxury fees, trash consultations,' just a litany of items," Asm. Considine said.

Her bill would require rent to be one number that includes every fee.

"If not, we are really sending a message that we are allowing corporations and hedge funds and private equities to come in here and take money from people deceptively. And I just don't think that as a state, we want to be known for that," Asm. Considine said.

Loretta Byers echoes that. She has a message for her landlord about the impact surprise fees can have:

In late January, under the new administration, the FCC withdrew a proposal to ban bulk internet billing agreements.

Full statement from AMG/Intrigue Apartments

"Thank you for reaching out to our office regarding the concerns raised by residents about the recently introduced Internet program. This initiative was designed with the goal of offering a more affordable alternative to the current internet rates in Las Vegas, which often range between $99-140 for basic plans. Our hope was to offer value and an average savings of up to 40% to typical retail pricing.

Due to some transitional changes in staffing, this was not adequately conveyed in the initial notification. We are in the process of informing residents that this program is entirely optional and will be presented during lease renewals or at move-in for new residents. It is structured to provide cost savings—not an additional expense.

Importantly, residents who are currently receiving free internet through a funded assistance program will remain unaffected. They will be offered, at the time of renewal, the opportunity to participate in this program consistent with the offer made to all residing in the community allowing for them to opt out should their program create better financial savings to them.

We are aware of the bills presented at the state level related to ancillary fees. This plan is actually being initiated with the intent of providing financial savings to our residents and bring down their household costs overall, especially since in most households it is necessary to have internet access, whether they are paying bills on-line, participating in schoolwork, or for the ability to have entertainment or watch the news. It is a significant savings that we are glad to be able to offer.

Thank you, again, for bringing the concerns to our attention and we will ensure that the correct message and correspondence regarding this service is distributed."