CHARLESTON, S.C. — Greystar Real Estate Partners LLC, a Charleston-based property management company, has agreed to pay $1.4 million to settle allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing unlawful fees on military servicemembers who terminated their leases early due to relocation orders.
Greystar, which manages over 800,000 housing units nationwide, was accused of using software that automatically charged early termination fees to military personnel, despite the protections offered under the SCRA. These charges, which ranged from hundreds to thousands of dollars, were supposed to be waived for servicemembers who needed to break their leases due to military orders. However, the company’s system required employees to manually reverse the fees, which many failed to do.
Financial Settlement and Changes to Policies
As part of the settlement, Greystar will pay $1.35 million to the affected military members and their co-tenants, along with a $77,370 civil penalty. The company has also agreed to make significant policy changes, including the implementation of SCRA-compliant software across all its properties within the next six months. Additionally, employees who handle lease agreements and terminations will be required to undergo annual training to ensure compliance with SCRA regulations.
Bryan Stirling, the U.S. Attorney for the District of South Carolina, emphasized the importance of protecting military personnel and their families. “America’s servicemembers devote their lives to defending our nation and must be able to do so without undue burdens,” Stirling said. “The Servicemembers Civil Relief Act protects our military families from unfair hardships such as penalties for terminating a housing lease to fulfill military orders.”
Greystar’s Response and Commitment to Compliance
In response to the settlement, Greystar issued a statement to News 2 explaining its cooperation with the Department of Justice (DOJ). The company acknowledged that while it had not knowingly used illegal software, human error led to the violation. Greystar stated, “We are committed to making any error right” and emphasized its ongoing support for servicemembers, veterans, and their families, including providing housing for thousands of military families across the U.S.
“We are proud of our longstanding commitment to supporting servicemembers, veterans, and their families who have sacrificed so much to serve and protect their country,” Greystar added.
Previous Legal Challenges
This settlement comes just months after Greystar was involved in a lawsuit alongside six other major landlords. These companies were accused of participating in a coordinated rent pricing scheme using RealPage, an algorithmic software that allegedly allowed landlords to manipulate rental prices by sharing competitive information. Greystar has denied any involvement in anti-competitive practices and plans to defend itself vigorously in court.
The settlement marks a significant step in ensuring that military servicemembers are treated fairly in housing matters, particularly when it comes to early lease terminations due to deployment or relocation orders. With the financial settlement and the promised policy changes, Greystar aims to restore trust and ensure future compliance with SCRA protections.
