Property Manager Greystar Illegally Withholds Tenants’ Security Deposits, Class Action Lawsuit Says

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A proposed class action lawsuit accuses Greystar Management Services of several violations of Florida law, including illegally withholding tenants’ security deposits.

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The 28-page security deposit lawsuit was filed by a former tenant of a Greystar-operated apartment complex in Florida who claims the major property manager has regularly breached the state’s Residential Landlord Tenant Act (FRLTA) by prematurely taking possession of tenants’ security deposits and failing to send them proper notice before doing so.

Under the FRLTA, if Greystar wishes to impose a claim against a departing tenant’s security deposit, the company is required to send the renter a notice of intent via certified mail within 30 days of moveout, the suit explains. According to the case, the law then provides tenants with 15 days to object to the charges.

However, the complaint contends that Greystar, which owns $76 billion in real estate assets, sends tenants, within days of moveout, an itemized list of amounts owed or deductions for purported damages, with only a seven-day response deadline, in direct violation of the FRLTA.

In addition, the filing argues that the document shows the property manager has claimed the entirety of a former tenant’s security deposit before the 15-day objection period has expired and automatically applied the funds to utility fees and other charges the company is allegedly owed.

The suit further asserts that Greystar has breached Florida law by failing to send notice of its intention to make a claim against a tenant’s security deposit within the requisite 30-day period. On top of this, the company fails to return the funds if an objection is received, in violation of the FRLTA, the case contends.

The lawsuit looks to represent anyone in Florida who, in the past five years, entered a standard form lease substantially similar to the plaintiff’s, had any portion of their security deposit retained and did not receive a security deposit letter compliant with Fla. Stat. § 83.49(3)(a) via certified mail within 30 days of moving out.

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