Class action lawsuit claims Des Moines tenants were charged illegal fees
A Des Moines woman has filed a class action lawsuit against Elevate Property Management, accusing the company of charging fees that are illegal under state law and forfeiting security deposits in bad faith.
Brandi DeGregory, 31, who signed a lease with the company in 2022, is the lead plaintiff in the lawsuit on behalf of current and former tenants, alleging that Elevate knowingly drafts leases that it knows are illegal under the state’s rental law, Iowa Code 56A.
DeGregory said in an interview with the Register that she and her boyfriend began having problems with the company almost immediately after they were shown an apartment for rent at the Westchester Square Apartments, 5528 Meredith Drive. That apartment was in good condition, but when they moved in, she said, they were given another one that had many problems.
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“It was dirty, the stove didn’t work, the ceiling was leaking and there was a lot of mold,” she said.
DeGregory said she complained to the city about the leaky ceiling and mold. She said an Elevate employee told the couple they would get a credit for one month’s rent because of all the problems in the apartment, but they didn’t receive it after the employee was fired. She said she and her boyfriend didn’t have enough money to pay the month’s rent, so they were charged a late fee of $100 per month.
When Elevate filed for eviction, it charged them for legal fees, she said.
Company representatives at Elevate’s headquarters in Wayzata, Minnesota, did not respond to messages seeking comment.
One of DeGregory’s lawyers, Nathan Vos of West Des Moines, said it will take months for a judge to recognize the case as a class action lawsuit. He estimates that as many as 1,000 renters could fall into that group.
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Elevate manages properties in Iowa, Missouri, Nebraska, North Dakota and South Dakota. Its properties in Des Moines include the 31st Street Apartments at 500 31st St., the Ingersoll Towers at 3662 Ingersoll Ave. and the 4220 Grand Apartments.
Among other things, the lawsuit alleges that the company illegally charges $100 in late fees. As long as the rent arrears are not paid, these fees will continue to accrue even if the rent is paid on time in subsequent months. According to the company’s leases, tenants must agree up front to pay a $25 fee in case the company takes legal action against the rent arrears. In addition, the lease requires tenants to pay legal fees and eviction costs.
Elevate has been the subject of numerous customer complaints and poor online reviews from employees who complained about high turnover, low pay, and poor organization. The company has a D- rating with the Better Business Bureau, but the company has not been accredited.
Brad Pleimann, a former investment banker and managing director and head of equity trading at Piper Jaffray Inc., is president of Elevate.
Lee Rood’s Reader’s Watchdog column helps Iowans get answers and accountability from public agencies, the justice system, businesses and nonprofits. Reach her at [email protected], at 515-284-8549, on Twitter at @leerood or on Facebook at Facebook.com/readerswatchdog.
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