G
reystar Real Estate Partners, the largest residential property management firm in the US, is facing a class action lawsuit alleging it has been charging excessive and illegal fees to tenants across California.

    The lawsuit, filed in U.S. District Court for the Southern District of California, claims that Greystar engages in deceptive business practices by adding mandatory fees beyond advertised rental rates, often for routine services like trash collection and pest control. These "junk fees" allegedly total over $500 per tenant annually.

    According to the complaint, these extra charges are not clearly disclosed and are part of a business model designed to shift costs onto renters while boosting Greystar's profits. Attorneys for the plaintiffs argue that these practices violate multiple state laws, including California's Consumer Legal Remedies Act and False Advertising Law.

    The lawsuit seeks to represent every California resident who was charged excessive fees by Greystar within the past six years. Attorneys estimate that Greystar's fee model results in tens of millions of dollars in unlawful revenue annually.

    Greystar has faced similar allegations from federal officials, including a complaint filed by the Federal Trade Commission (FTC) in January. The FTC alleged that Greystar engaged in deceptive practices and charged excessive fees to tenants. However, Greystar denied these claims, stating that the lawsuit was based on "gross misrepresentations of the facts" and would vigorously defend itself against the allegations.

    The issue of "junk fees" has gained national attention, with a 2024 White House report estimating that such charges cost Americans over $90 billion annually. Federal officials have pushed for increased transparency and regulation of these fees across multiple industries.