Des Moines class-action lawsuit against property management company alleges illegal fees
A Des Moines woman has filed a class-action lawsuit against Elevate Property Management, accusing it of charging fees that are illegal under state code and retaining security deposits in bad faith.
Brandi DeGregory, 31, who signed a lease with the company in 2022, is the lead plaintiff in the suit on behalf of current and former tenants. She alleges Elevate knowingly drafts rental agreements it knows are illegal under the state's landlord-tenant law, Iowa Code 562A.
DeGregory said in an interview with the Register she and her boyfriend had problems with the company almost immediately after they were shown an apartment to rent at Westchester Square Apartments, 5528 Meredith Drive. That apartment was in good condition, but when they moved in, she said, they were given a different one that had lots of problems.
More Watchdog: Former students at defunct Cono Christian School allege they were paddled, kept in basement
"It was dirty, the stove didn't work, there were leaks in the ceiling and it had a ton of mold," she said.
DeGregory said she complained to the city about the leaky ceiling and the mold. She said an Elevate employee told the couple they would get credit for a month's rent because of all the problems in the unit, but they failed to receive it after the employee was fired. She said she and her boyfriend didn't have the money to pay that month's rent, so they were charged a $100-a-month late fee.
When Elevate moved to evict them, it charged them attorneys' fees, she said.
Company officials at Elevate's headquarters in Wayzata, Minnesota, did not respond to messages seeking comment.
One of DeGregory's attorneys, Nathan Vos of West Des Moines, said it will take months for a judge to certify the case as a class action. He estimates as many as 1,000 tenants could be in that class.
More Watchdog: Annuity salesman sentenced to 19 years in what prosecutors call epic 17-year fraud scheme
Elevate manages properties in Iowa, Missouri, Nebraska, North Dakota and South Dakota. Its Des Moines properties include The 31st Street Apartments at 500 31st St., Ingersoll Towers at 3662 Ingersoll Ave., and the 4220 Grand Apartments.
Among other things, the lawsuit alleges, the company charges illegal $100 late fees, that unless the back rent is cleared those fees continue to accrue even if rent in subsequent months is paid on time, that the company’s rental agreements make tenants agree in advance to pay $25 fees if the company takes legal action on back rent, and that the lease requires tenants to cover attorney’s fees and eviction costs.
Elevate has been the subject of numerous customer complaints and poor online reviews from employees who complain of high turnover, low wages and poor organization. It has a D- rating with the Better Business Bureau, which has declined to accredited it.
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 officials, the justice system, businesses and nonprofits. Reach her at lrood@registermedia.com, at 515-284-8549, on Twitter at @leerood or on Facebook at Facebook.com/readerswatchdog.
This article originally appeared on Des Moines Register: Class-action lawsuit claims illegal fees charged to Des Moines tenants
