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

Los Angeles /
May.May 26, 2020 03:28 PM
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
Trion Properties managing partners Max Sharkansky and Mitch Paskover (Trion Properties, iStock)
Trion Properties’ latest multifamily fund targets West, Southeast
Trion Properties’ latest multifamily fund targets West, Southeast
Jordan Slone of Harbor Group with the Olive Ridge complex (Harbor)
Harbor pays $47M for 220-unit complex in Pomona
Harbor pays $47M for 220-unit complex in Pomona
ShainRealty Capital managing partners Jonathan Shainberg and Elliot Shainberg (ShainRealty Capital)
ShainRealty Capital moves into Dallas with $46M purchase
ShainRealty Capital moves into Dallas with $46M purchase
Blackstone CEO Stephen Schwarzman (Getty, iStock)
Blackstone buys San Diego apartment complexes in $1B deal
Blackstone buys San Diego apartment complexes in $1B deal
Neil Shekhter (Shekhter by Kevin Scanlon; iStock)
Santa Monica mega-portfolio officially hits market
Santa Monica mega-portfolio officially hits market
Rendering of 1411 South Flower Street (Housing Diversity Corporation)
Micro-housing to rise in DTLA Opportunity Zone
Micro-housing to rise in DTLA Opportunity Zone
NMS Properties' Neil Shekhter and renderings of 1325 6th Street, 1437 6th Street, 1430 Lincoln Blvd. and 1318 Lincoln Blvd. in Santa Monica (Kevin Scanlon, WSC)
City for sale: Shekhter looks to unload mega-portfolio in Santa Monica
City for sale: Shekhter looks to unload mega-portfolio in Santa Monica
300 S. Santa Fe Ave. (Google Maps)
LA’s top 5 multifamily investment sales of 2020 fell 50%
LA’s top 5 multifamily investment sales of 2020 fell 50%
arrow_forward_ios

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

Loading...