California Landlord Reaches A $19.25 Million Settlement After A Tenant Was Charged Almost $2,000 For Work That Cost $907 And Another Got A Carpet Cleaning Bill For A Concrete Slab

One former tenant says his landlord charged him almost $2,000 for work on his old apartment. Then he got the contractor’s own invoice, and the actual fee was just $907.

A brown apartment building with rows of windows and balconies.

That kind of gap is at the heart of a $19.25 million class action settlement announced October 20 between Essex Property Trust and former tenants who claimed the company withheld security deposits in violation of state law. The deal awaits court approval.

Yahoo Finance reported the details in a story on the California landlord’s $19.25 million settlement, drawing on coverage from the Times of San Diego.

$907 Work, A Nearly $2,000 Charge

The former tenants also claimed they were charged for work done by third-party contractors without ever receiving invoices. In the case of the man above, once he got the bill straight from the contractor, he found the real cost was $907, not the nearly $2,000 Essex had charged him.

Other tenants said they were charged for work that was never done at all.

One of the complaints came from a renter at the Form 15 apartment complex. She said she was charged for carpet cleaning after moving out, even though the floor was nothing but a concrete slab.

The Cash Is Only Half The Story: $8.7 Million In Debt Forgiven

The $19.25 million payout is only part of the deal. According to one of the attorneys on the case, Essex will also forgive $8.7 million in turnover debt for tenants.

Lawyers say the agreement would return money and provide debt relief to more than 200,000 former Essex tenants. “Those renters represent only a small fraction of the Californians vulnerable to having their security deposits improperly withheld,” attorney Jimmie Davis Parker said in a statement.

“Challenging an improper deduction individually can cost more than the amount at stake, giving powerful landlords an unfair advantage,” Parker added.

The Lawsuit Dates Back To 2022

The suit was filed in San Diego County on Sept. 27, 2022, according to court records. The Times of San Diego estimates Essex owns 5,311 apartment units in that county.

It alleges the company violated California Civil Code Section 1950.5 and Business and Professions Code Section 17200 and the sections that follow. Among the complaints were inflated work orders and charges for services that were never warranted.

That Civil Code section is the state’s rule on security deposits, which is why this case matters well beyond one landlord.

For renters, the lesson is simple. A deposit is your money, held by the landlord for a specific purpose, and every deduction should match real work that was actually done. When a charge cannot be traced to a bill, a photo or a clear description of the damage, it deserves a second look.

Moving out is stressful enough, with boxes, keys and cleaning to handle. Many renters pay the final statement without a second thought, and that habit is exactly why small padded charges can add up across thousands of apartments.

Lasting Changes Across About 49,600 California Apartments

The settlement also reaches beyond the checks. Attorneys Jeffrey Hogue and Tyler Belong’s office said in a statement that “to its credit, Essex has also committed to lasting, court-enforceable improvements across its roughly 49,600 California apartment homes.”

Those improvements include vendor invoices in every move-out package, vendor discounts passed through to tenants, and regular training on Civil Code section 1950.5.

Co-counsel said the terms could bring “$40 million to $83 million in turnover charges into compliance over the next decade and protect some 400,000 future departing tenants.”

Essex Denies Wrongdoing

Representatives for Essex sent their own statement. The company denies any wrongdoing, “but recognizes the risks, expense, and uncertainty of continued litigation.”

The settlement still needs a judge’s approval, so the final terms could change before money goes out.

Court approval of a class settlement is a step that comes after the announcement, and the people covered by it are the former tenants described in the case. Until a judge signs off, the numbers above are the terms the two sides have agreed to, not money already in anyone’s mailbox.

How To Protect Your Own Security Deposit

You do not need to be in a class action to fight a bad deduction. These are general tips, and the rules vary by state, so check the law where you live.

Photograph and video every room on move-in day and again on move-out day, with dates, so you can show the condition of the place.
Ask for an itemized list of deductions and, if a contractor did the work, ask for the contractor’s invoice. In the Essex case, the invoice is what revealed the $907 figure.
Compare each charge with what actually happened. A carpet cleaning fee on a concrete floor is the kind of mismatch worth challenging.
Put your dispute in writing and keep copies of everything you send and receive.
Know your state’s deposit statute. In California, the case centers on Civil Code Section 1950.5.

Where To Get Help

Tenants who are worried about their rights as renters can reach out to one of the state’s many legal aid and advocacy centers, including the Housing Rights Center or Tenants Together.

As attorney Parker pointed out, fighting a single deduction on your own can cost more than the money at stake. Free or low-cost help may be the difference between giving up and getting your deposit back.

Willow and Hearth