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  • 1.  City of New York sues Extra Space

    Posted 20 days ago

    This is probably coming to Texas since the REITs are running a similar web-teaser scheme in the urban markets:

    New York City has filed a lawsuit against Extra Space Storage, accusing the company of engaging in bait-and-switch pricing practices and failing to maintain clean storage units. The lawsuit seeks over $5 million in penalties and restitution for affected consumers due to alleged predatory business practices.

    Overview of the Lawsuit Against Extra Space Storage

    New York City has filed a lawsuit against Extra Space Storage, a major self-storage company, for alleged predatory business practices. The lawsuit, initiated by the Department of Consumer and Worker Protection (DCWP), claims that Extra Space engaged in deceptive pricing strategies and failed to maintain proper facility conditions.

    Allegations Against Extra Space Storage

    Bait-and-Switch Pricing

    • Extra Space is accused of advertising low introductory rates to attract customers.
    • After customers moved in, the company allegedly raised rental prices significantly, sometimes doubling them within a year, often without prior notice.
    • The lawsuit seeks over $5 million in civil penalties and full restitution for affected consumers.

    Poor Facility Conditions

    • The lawsuit also highlights issues with cleanliness and maintenance at Extra Space facilities.
    • Customers reported vermin infestations, water damage, and mold, contradicting the company's claims of clean and safe storage units.

    Aggressive Tactics

    • Extra Space allegedly changed locks on units and threatened to auction off customers' belongings if they did not pay unexpected fees.
    • The DCWP has received over 100 complaints regarding these practices, indicating a pattern of consumer exploitation.

    Response from Extra Space Storage

    Extra Space has acknowledged the lawsuit and stated that it is conducting an internal review of the claims. The company maintains that it operates within legal boundaries and disputes the allegations made against it.

    AI generated from various sources



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    Edward Holman
    Deep Ellum Self Storage
    Dallas TX
    (214) 426-3337
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  • 2.  RE: City of New York sues Extra Space

    Posted 19 days ago
    Edward, thanks for sharing. Many may disagree with Extra Space and how they manage their revenue but I’m certain they are doing everything legally. Their fee structure when payments are not made on time are surely stated clearly in the lease. The rates, their move in rate and subsequent “increases” are legally outlined but may be easy to misunderstand by the public. This may not be how you chose to set up your business but they are legal, I would bet. Control your property. Be above board. Operate a good business with the intent of providing the best customer experience and service you can while at the same time being responsible to whoever owns your business. Your customers, your employees, your community, show up with wisdom and concern to do right by all of them. We all can do good for ourselves and others at the same time. Thanks for the comment and sharing this story.

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    John McAfee
    CEO / Owner
    The Storage Place - DFW
    Midlothian TX
    (214) 923-0070
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