Sam Zell's Apartment REIT Sued By LA Tenants

The Breakwater Marina Apartments In Marina Del Rey, An Equity Residential Property Mentioned In The Complaint.

Sam Zell's Equity Residential faces a lawsuit from a group of Los Angeles tenants over alleged background checks without the proper disclosures.

A group of Equity Residential renters are taking the Chicago-based REIT to court, alleging that it invaded the privacy of thousands of potential tenants by ordering so-called investigative consumer reports on them without informing them it was doing so, The Real Deal reports.

The reports are allowed, but landlords are supposed to disclose the investigation to tenants and provide them with copies of the findings. The complaint, filed in Los Angeles County Superior Court last week, claims that Equity Residential did not make such disclosures.

These investigative consumer reports, more thorough than a credit report, often contain damaging errors, hence the requirement that the results be disclosed to tenants, the complaint claims.

“Without disclosure … [the prospective tenants] would not be able to read the reports and demand that errors be corrected, and [the prospective tenants] would not even know if such reports were being used against him or her,” it states, according to TRD.

Equity Residential owns more than 15,000 units across 66 properties in the city.

Renters at Equity Residential properties in Marina Del Rey and Hollywood are among the renters on the complaint. Second-quarter filings for the REIT show that the average rent at its LA properties is $2.8K per month. The plaintiffs are suing for damages and ask the court for $10K for each offending report.

Equity Residential has faced a number of recent legal challenges surrounding its rental practices, including a class-action suit filed in San Francisco in which tenants claimed they were being significantly overcharged for background checks, TRD said.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Los Angeles Newsletters
Related Stories

Years Later, Millions In Chicago Housing Projects Remain Unbuilt

Developers Scheme To Build More Housing Units As NYC's Tax Incentive Ages

Downtown Los Angeles Retail, Office Hub The Bloc Up For Sale

U.S. Multifamily Market Regaining Its Balance As Yearslong Supply Wave Tapers Off

Hines Spends $170.5M On Mixed-Use Portfolio In Dallas' Bishop Arts District

How UK Investment Giant L&G Plans To Grow Its U.S. Multifamily Holdings

Properties Owned By REIT Accused Of Fraud To Be Auctioned Off

DHS Buys 3 More Detention Facilities From The Geo Group For $950M

Major NYC Multifamily Firm Expands With Tech-Driven Operations

Multifamily's Days As Commercial Real Estate's 'Golden Child' Are Over

Amazon, LA Olympics Organizer Take Over 39-Acre Site Formerly Home To Forever 21

Riverwards Secures $36M In Construction Financing For Philly Apartment Project