Greystar probed tenants’ “character,” “reputation,” “rental history,” lawsuit claims

The multifamily landlord and property management software firm RealPage allegedly compiled extensive dossiers on several prospective LA renters

TRD LOS ANGELES /
May.May 27, 2020 08:30 AM
Greystar CEO Bob Faith in front of Greystar-owned DTLA building

Greystar CEO Bob Faith in front of Greystar-owned DTLA building

Greystar, one of the largest multifamily property owners in the country, is accused of gathering extensive financial and personal information on several prospective tenants without their knowledge or consent.

Eight tenants at Greystar-owned apartment buildings in Los Angeles have filed suit, saying the giant landlord broke California’s Investigative Consumer Reporting Agencies Act by concealing “the nature and type of investigative consumer reports they would procure from the plaintiffs.”

Greystar was sued last August for violating state consumer protection law, according to the lawsuit filed Friday in L.A. County Superior Court. But despite “being on notice that its conduct was unlawful, defendant Greystar California committed the above violations anyway,” according to the suit.

The complaint also names as a defendant RealPage, a Texas-based company that provides property management software for the rental housing industry. The firm is accused of furnishing Greystar with the investigative reports on the tenants.

The lawsuit focuses on five apartment buildings at which the alleged dossiers were collected. At each of the properties, Greystar procured “certain information on each plaintiff’s character, general reputation, personal characteristics, and/or mode of living, criminal, employment, and rental history.”

Greystar allegedly violated state law by not providing the prospective tenants with a copy of the report, did not tell the tenants when the report would be finished and did not disclose to the tenants that RealPage was involved — each a violation of state law. The suit also notes that Greystar used the tenants’ application fees to finance the probes.

The eight named plaintiffs are seeking $240,000 each in damages, $160,000 from Greystar and $80,000 paid by RealPage. The plaintiffs are also seeking damages for Greystar’s alleged “gross negligence” in violating the law after being accused before of breaking the consumer protection statute.

Messages left with plaintiffs’ lawyer Joseph Ollinger were not returned.

Greystar declined comment, saying it does not discuss pending litigation. The company owns 400,000 housing units worldwide; the National Multifamily Housing Council has called it the largest multifamily property owner in the U.S. Greystar also has $14 billion under development and $36 billion in assets under management, which includes a multibillion-dollar property portfolio in L.A. County.

Messages left RealPage were not returned. It was in the news earlier this year after hackers reportedly stole $10.5 million from it and transferred the funds to a Nigerian bank account.


Related Articles

arrow_forward_ios
Ohana Real Estate Investors CEO Christopher Smith (left) and Alexico Group's Izak Senbahar with the Mark Hotel at 25 East 77th Street (Getty, LinkedIn, Google Maps)

Judge: Hotel foreclosure sale is off the “Mark”

Judge: Hotel foreclosure sale is off the “Mark”
President Donald Trump (Getty, iStock)

Trump tweets that he “may END” Obama-era fair housing regulation

Trump tweets that he “may END” Obama-era fair housing regulation
Toby Moskovits (Sasha Maslov)

“Wasn’t me”: Toby Moskovits disputes $210,000 legal bill

“Wasn’t me”: Toby Moskovits disputes $210,000 legal bill
Every day that the city is shut down, is another day of bills piling up for tenants. (Illustration by Paul Dilakian)

Unpaid bills force NYC restaurateurs and landlords to come to the table

Unpaid bills force NYC restaurateurs and landlords to come to the table
From left: Aaron Feldenauer, 90 Washington Street and Joseph Moinian (Getty, Google Maps)

Mayoral candidate sues Moinian

Mayoral candidate sues Moinian
One Thousand Museum and Porsche Designer Tower (Porsche)

Douglas Elliman agent allegedly created scheme to pocket commission advances: lawsuit

Douglas Elliman agent allegedly created scheme to pocket commission advances: lawsuit
Compass CEO Robert Reffkin and Realogy CEO Ryan Schneider (Getty, iStock)

Realogy drops non-compete suit against Compass

Realogy drops non-compete suit against Compass
NY State Senator Liz Krueger (iStock)

Why did Airbnb give in to de Blasio?

Why did Airbnb give in to de Blasio?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...