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Class Action Targets Big Landlord

December 6, 2002
Equity Residential, the largest owner of apartment buildings in the United States, is named in a consumer class action lawsuit filed on behalf of the company's Florida tenants.

The suit, filed in West Palm Beach, charges that Equity Residential violated Florida law by charging tenants an extra 60 days' rent plus a one-month penalty fee for terminating their leases early. In other cases, the company alleged charged tenants an extra two months' rent if they stayed through their lease term but failed to give 60 days' notice of their intention to vacate.

"Tenants in this state who terminate early are required to only pay rent for the days the property goes unrented. You shouldn't have to pay any extra penalty," attorney Rod Tennyson said.

The suit charges that Equity has collected millions of dollars of illegal fees from tenants of its 33,000 rental units in Florida. Besides charging illegal fees, lawyers said the company is very aggressive and "hard-nosed" in its collections practices.

Equity routinely pursues tenants in small claims court and repeatedly violates the Consumer Collection Practices Act, the suit charges.

"These 'gotcha penalties' seem to be a trend in corporate America," Tennyson said. "We want an injunction to stop these practices and we want refunds plus interest."

Although Tennyson's suit applies only to Florida residents, attorneys said they expected similar suits to be filed against Equity in other states. The Chicago-based company owns more than 1,000 apartment buildings in 36 states, totaling about 225,000 apartment units.

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