Greystar Class Action Lawsuit Filed Over Alleged ‘Junk Fees’ Charged to California Tenants

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A proposed class action lawsuit claims Greystar illegally charges California tenants undisclosed “junk fees” on top of their monthly rent, including charges for pest control, trash disposal and utility administrative services.

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According to the 43-page lawsuit, Greystar forces tenants to pay numerous fees for costs that, under California law, should be absorbed by landlords and incorporated into the total rental rates. The filing alleges that Greystar’s junk fees often cost tenants an extra $500 per year and are not included in its advertised rent prices.

One plaintiff, a California resident, says that in 2022, they viewed a unit listed for $3,434 per month at VOX Residences—a Greystar-managed apartment complex in Los Angeles. It wasn’t until the plaintiff was provided with a formal lease agreement that they learned they would be charged a $20 “new trash account fee,” a $5 “trash administrative fee,” a monthly $35 trash fee and a monthly $3 pest control fee, the suit contends.

“Having already invested considerable time and energy in selecting an apartment, including an in-person walk through, and with the pressure of needing to move, [the plaintiff] was left no reasonable alternative other than to sign the Greystar lease with unlawful Junk Fees and other charges added on top of the originally agreed-upon price,” the case says. “In total, [the plaintiff] paid $751 in unavoidable, mandatory Junk Fees to Greystar that were not included in the advertised rental price.”

Per the filing, California law prohibits Greystar from shifting the costs of pest control and trash services to tenants. State law also precludes the property management firm from making its units appear cheaper than they actually are by omitting the extra fees, the case asserts. The suit argues that this deceptive tactic, known as “drip pricing,” is used to trick consumers into paying more for a product or service than they otherwise would have.

The Greystar lawsuit accuses the corporate landlord of exacerbating California’s decades-long housing crisis by driving up rental rates and generally placing profits over people.

“Like [the plaintiffs], tens of thousands of Californians have been impacted by Greystar’s unlawful Junk Fee practices, which add up to tens of millions of dollars each year in illegal charges borne by consumers in the most critical of transactions,” the case asserts.

The lawsuit looks to represent all individuals who, within the past six years, were charged a mandatory fee by Greystar that exceeded the advertised and/or contracted rental rate for a residential lease in California.

The suit also seeks to cover all individuals who, within the past six years, paid Greystar separate fees for pest control, trash/trash administrative and/or utility administrative services not included in the rent for a residential lease in California.

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