Lawsuit Says Landlord Billed For Carpet Cleaning On Concrete Floors And Nearly $2,000 For Carpet A Contractor Charged $907, Now A $19.25 Million Settlement Could Wipe Out $8.7 Million In Move Out Charges

Imagine moving out of your apartment, handing back the keys and then getting a bill for cleaning the carpet. Now imagine the unit had concrete floors. That is one of the charges tenants say they were hit with in a class action against Essex Property Trust, one of California’s largest apartment landlords.

A woman mops the floor of a bright, modern living room, the kind of cleaning charged at move-out.

Essex has agreed to pay $19.25 million to settle the case, which was filed in San Diego County by former tenants who say the company illegally kept their security deposits. Essex denies any wrongdoing and says it settled because of the risks, cost and uncertainty of continued litigation.

The state law at the center of the case is California Civil Code section 1950.5, which you can read at the state legislature’s website.

Carpet Cleaning Charged On Concrete Floors

The lawsuit, Norman v. Essex Property Trust, was filed in September 2022 by two former San Diego County tenants, Alexis Norman and Nicolette Cochran. It says Essex billed tenants for repairs, deep cleaning, painting and other services using internal purchase orders. State law, the tenants argue, requires actual invoices from third parties.

The complaint lists examples. One tenant at an Essex complex in downtown San Diego was charged for carpet cleaning even though the unit had concrete floors. The same tenant was billed $550 for painting, and Essex had no record that any painting was done.

Almost $2,000 For Carpet A Contractor Billed At $907

The biggest gap in the complaint involves a man in San Fernando. He was charged nearly $2,000 to replace his carpet, while the contractor’s invoice came to $907.

The tenants allege that Essex inflated contractor invoice amounts, charged for work that was never performed, and kept money from deposits as a result. Essex denies it.

$8.7 Million In Move-Out Charges Wiped Away

The settlement goes beyond the $19.25 million payout. Former tenants will also have $8.7 million in turnover debt forgiven, and that debt will be cleared from credit bureau records. For anyone who got a collections notice over move-out charges, that part may matter as much as the cash.

The case also leads to changes in how the company operates. Essex agreed to court-enforceable changes covering roughly 49,600 California apartment homes. They include putting vendor invoices into move-out packages, passing vendor discounts on to tenants, and regular training on Civil Code section 1950.5.

Co-counsel estimate those changes will bring between $40 million and $83 million in turnover charges into compliance over the next decade and protect about 400,000 future departing tenants.

A Big Landlord With Thousands Of Units

According to company documents in the case, Essex owns 47,874 apartment units in California, including 5,311 in San Diego County. The litigation lasted more than four years.

Attorney Jimmie Davis Parker of Robinson and Parker in San Diego represented the tenants, with co-counsel Jeffrey Hogue and Tyler Belong. His firm has recovered more than $27 million in other deposit class actions against Geoffrey Palmer, MG Properties and Willmark Communities.

What California Law Says About Your Deposit

California landlords generally must return a security deposit, or an itemized statement of deductions, within 21 days after you move out. When a deduction for repairs or cleaning is more than $125, the landlord must include a copy of the receipt or invoice with the statement. Landlords also cannot charge for normal wear and tear.

Those points come from Civil Code section 1950.5, and they are the heart of why invoices matter in this case. A tenant who is billed for work with no paperwork has a reason to push back.

Since July 2024, California has also limited most security deposits to one month’s rent. That means a smaller deposit at stake, but every dollar is still yours until a landlord proves a legitimate deduction.

The lesson from the carpet example is simple. Nearly $2,000 on a statement and $907 on the contractor’s invoice are two numbers that should have matched, and only a tenant who asks to see the invoice can spot the difference. Many renters never ask, because the bill arrives after they have moved and the amount seems too small to argue over.

How To Protect Your Own Deposit

You do not need to be in a class action to guard your money. These habits help any renter:

Photograph or video every room on move-in day and again on move-out day, including floors, walls and appliances, with dates on the files.
Keep a copy of your lease and any move-in condition checklist.
Ask in writing for a final walk-through before you leave.
If a charge shows up, ask for the invoice. Compare the amount to what a contractor actually billed and check that the work matches your unit, such as carpet in a unit that has carpet.
Dispute inflated or unexplained charges in writing and keep copies.

What Former Essex Tenants Should Do

If you rented from Essex in California, the settlement terms are worth a close look. Watch your mail and email for any notice about the settlement, and keep old lease and move-out paperwork handy in case it is needed to support a claim.

Whatever the final outcome, the case is a reminder for every renter that a move-out bill is a document you are allowed to question. Ask to see the paperwork, and keep your own records.

Willow and Hearth