Military servicemembers receive compensation after wrongful lease fees by landlord.
Federal prosecutors announced that Greystar Real Estate Partners LLC, the largest property management company in the United States, will pay over $1.4 million to resolve allegations of unlawful charges against military servicemembers. The Department of Justice (DOJ) took legal action after claiming that Greystar violated the Servicemembers Civil Relief Act (SCRA) by imposing illegal fees on military members who ended their leases early due to military relocation orders. This settlement marks a significant enforcement of protections intended to shield servicemembers and their families from unfair financial burdens.
The Servicemembers Civil Relief Act provides legal protections to active-duty military personnel, including safeguards against penalties when they must break a lease because of a permanent change of station or deployment orders. However, the DOJ alleged that Greystar failed to comply with these protections. Greystar managed multiple properties near military installations, including Shaw Air Force Base and Fort Jackson in South Carolina’s Midlands region. The company reportedly used software known to automatically charge early termination fees without considering whether the tenant was protected under the SCRA. This led to servicemembers being wrongly billed fees they should have been exempt from under the law.
According to the settlement, Greystar will allocate about $1.35 million to compensate affected servicemembers and their co-tenants. An additional $77,370 will be paid as a civil penalty. Those servicemembers who already paid the improper early termination fees will receive triple damages, as required by law, to compensate for the financial harm caused. Greystar has also agreed to update its policies, training programs, and software systems to ensure compliance with the SCRA going forward. The company will adopt lease forms and management tools that correctly identify and respect the rights of military tenants.
U.S. Attorney Bryan Stirling for the District of South Carolina emphasized the importance of protecting military families from undue financial strain. He noted that servicemembers devote their lives to defending the country and should not face unfair penalties when fulfilling military orders. The SCRA exists to prevent such hardships, and the Department of Justice remains committed to enforcing these protections. Stirling’s statement underscores the government’s role in ensuring military members and their families are treated fairly by landlords and property managers.
Military personnel and their dependents who believe their rights under the SCRA may have been violated are encouraged to contact their nearest Armed Forces Legal Assistance Program Office. These offices provide free legal support to servicemembers facing housing or other legal issues related to their military service. Access to this assistance is critical in helping military families understand and exercise their rights under the law.
This settlement also serves as a reminder to property management companies nationwide about the importance of following federal laws protecting servicemembers. The use of automated systems and software in property management requires careful oversight to avoid unintentional violations. By agreeing to improve its policies and adopt SCRA-compliant systems, Greystar aims to prevent similar problems in the future.
In summary, the case highlights the need for continued vigilance to protect servicemembers’ housing rights. It demonstrates that federal authorities actively monitor and address situations where military families face unfair treatment. The resolution with Greystar offers reassurance that legal remedies are available when servicemembers’ protections are not honored. It also reinforces the value of federal laws like the Servicemembers Civil Relief Act in supporting those who serve the nation.
Sources:
DOJ: Greystar to pay over $1.4M in settlement for ‘unlawful charges to military servicemembers’
Justice Department orders Greystar to pay over $1.4m for illegal fees on US servicemembers
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