Military veterans receive a compensation of $1.4 million from Greystar due to a settlement agreement.
In a significant development, Greystar Real Estate Partners LLC, the largest property management company in the United States, has agreed to pay over $1.4 million to resolve allegations of unlawful charges against military servicemembers. The case serves as a reminder to property management companies nationwide about the importance of following federal laws protecting servicemembers, particularly the Servicemembers Civil Relief Act (SCRA).
The SCRA provides legal protections to active-duty military personnel, including safeguards against penalties when they must break a lease due to a permanent change of station (PCS) or deployment orders. However, recent enforcement actions have highlighted common violations by property management companies, specifically the illegal imposition of early termination fees on servicemembers who end leases early due to military relocation orders.
Greystar, which manages multiple properties near military installations, reportedly used software to automatically charge early termination fees without considering whether the tenant was protected under the SCRA. This led to the company knowingly allowing software to impose early termination fees on servicemembers protected under the law, as alleged by the Department of Justice (DOJ).
The settlement requires Greystar to allocate about $1.35 million to compensate affected servicemembers and their co-tenants, and pay an additional $77,370 as a civil penalty. Servicemembers who already paid the improper early termination fees will receive triple damages to compensate for the financial harm caused.
Greystar aims to prevent similar problems in the future by agreeing to improve its policies and adopt SCRA-compliant systems. The company will update its policies, training programs, and software systems to ensure compliance with the SCRA going forward.
JWB Property Management in Jacksonville also faced similar allegations, imposing early termination fees on at least six military members who tried to terminate their leases after receiving relocation orders. The company was required by the DOJ to pay over $39,000 in compensation to affected servicemembers and a $25,000 civil penalty, and to update policies and training to ensure future compliance with the SCRA.
Federal authorities actively monitor and address situations where military families face unfair treatment. Access to free legal support from Armed Forces Legal Assistance Program Offices is critical in helping military families understand and exercise their rights under the law. These offices provide legal assistance to servicemembers facing housing or other legal issues related to their military service.
The settlement offers reassurance that legal remedies are available when servicemembers' protections are not honored. U.S. Attorney Bryan Stirling for the District of South Carolina emphasized the importance of protecting military families from undue financial strain.
The case highlights the need for continued vigilance to protect servicemembers' housing rights. The use of automated systems and software in property management requires careful oversight to avoid unintentional violations of the SCRA. As the largest property management company in the U.S., Greystar's settlement serves as a significant step towards ensuring compliance with the SCRA, safeguarding the rights of military personnel and their families.
The settlement with Greystar Real Estate Partners LLC underscores the importance of adhering to the Servicemembers Civil Relief Act (SCRA) in the financial aspects of the business, particularly in matters concerning property management. This development will encourage other companies to review their policies and mechanisms to ensure compliance with the SCRA, thereby protecting the rights of military personnel in the housing sector.
