The New York City Department of Consumer and Worker Protection (DCWP) has filed a lawsuit against self-storage real estate investment trust (REIT) Extra Space Storage Inc., accusing the company of predatory practices, including bait-and-switch pricing. Entered in a New York state court in Manhattan, the lawsuit seeks full restitution, more than $5 million in civil penalties for thousands of violations of city law, and immediate changes to how Extra Space conducts business. This is the first lawsuit DCWP is bringing against a self-storage company, according to sources.
According to the lawsuit, Extra Space “dramatically” raised prices shortly after many customers rented a unit, often without notice, sometimes doubling their rate within one year. It was also accused of changing locks and threatening to auction belongings to “extort” consumers into paying higher prices or undisclosed “junk” late fees, sometimes totaling hundreds of dollars. Following Executive Order 09, DCWP has led a citywide crackdown on junk fees that inflate prices for consumers. Extra Space customers have also reported widespread vermin infestations, water damage and mold, according to the claim.
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Due to these pricing practices, the New York City Council decided to require licensing for the self-storage industry. Under Local Law 171 of 2025, which was enacted on Nov. 28 and takes effect on Aug. 25, all facilities in New York City will be required to obtain a license from the DCWP, sources reported.
Extra Space operates 60 of the more than 300 self-storage facilities in New York City. In 2025, DCWP received 36 complaints against REIT CubeSmart, 31 for Extra Space and 20 for Manhattan Mini Storage, according to sources.
“This lawsuit aims to shut down Extra Space’s deceptive bait-and-switch scheme, recover full restitution for consumers, and send a clear message to the self-storage industry that exploiting New Yorkers comes with serious consequences,” said DWCP Commissioner Sam Levine. “This ‘Fee Free February’ and every month, false advertisements, hidden late fees and [other] predatory practices are on our radar. The era of exploiting New Yorkers is over.”
“For too long, self-storage companies like Extra Space have used deceptive tactics to lure New Yorkers in with low introductory rates, only to jack up prices and hit them with hidden fees. This kind of behavior drains consumers’ wallets and undermines affordability in our city,” said Julie Su, the city’s deputy mayor for economic justice. “This administration is committed to rooting out corporate greed wherever it appears, and I commend commissioner Levine and DCWP for taking bold action by filing this lawsuit.”
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“Extra Space Storage operates within the laws of each of the jurisdictions in which we do business," said Extra Space CEO Joe Margolis. "Several of the allegations in the complaint reflect practices that are expressly permitted under the New York State laws. Others are clearly outlined in the lease and agreed to by our customers. And in several instances, we disagree with the claims being made. We operate fully within the bounds of the law and remain committed to continuing to do so.”
Headquartered in Salt Lake City, Extra Space operates 4,238 self-storage facilities in 42 states under the Extra Space, Life Storage and Storage Express brand names. Its facilities comprise 326.9 million square feet of rentable space in 2.9 million units.
Sources:Curbed, Mamdani Takes on the Self-Storage Wild WestDepartment of Consumer and Worker Protection, DCWP Sues Extra Space for Bait-and-Switch Pricing, Vermin-Infested Units, Junk Fees, and Other Predatory PracticesHarlem World, DCWP Sues Extra Space Over Deceptive Pricing, Hidden Fees, Vermin, And Predatory PracticesReuters, Extra Space Storage Sued by New York City Over ‘Predatory’ PracticesSupreme Court of the State of New York, DCWP vs. Extra Space Storage Inc | Complaint
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