American Campus Communities, one of the country’s largest student housing providers, has been the subject of two major tenant class action lawsuits: a Missouri federal case over the way it advertised “monthly” rent, which settled for $444,775 in 2018, and a Texas case brought on behalf of more than 65,000 tenants over missing lease language, which the Supreme Court of Texas dismissed in 2023. The company also draws a steady stream of individual complaints about move-out charges, early termination, and billing.
The Missouri “Monthly Rent” Settlement
In 2016, tenant Brian Fellows sued American Campus Communities Services, Inc. in the U.S. District Court for the Eastern District of Missouri, alleging that ACC advertised “monthly” rental rates at several Columbia, Missouri student properties for leases that actually ran only about 11.5 months. The complaint, brought under the Missouri Merchandising Practices Act and an unjust enrichment theory, argued that tenants paying 12 installments at the advertised “monthly” rate were effectively paying twice for the final partial month.1Justia. Fellows v. American Campus Communities Services, Inc., No. 4:16-cv-01611-JAR
The class covered tenants who signed new leases between November 1, 2011, and November 15, 2016, at three ACC-managed properties: The Cottages of Columbia, Grindstone Canyon, and Forest Village and Woodlake.2KBIA. Settlement Approved in Student Housing Class Action
Judge John A. Ross granted final approval to a $444,775 settlement on June 20, 2018. Of that total, $275,000 went into a class benefit fund distributed in full to tenants who filed valid claims, $125,000 covered attorneys’ fees and costs, roughly $39,775 covered administrative expenses, and named plaintiff Brian Fellows received a $5,000 service award. A total of 715 unique claimants submitted valid claims, and the fund was divided into 852 shares at $322.77 per share.1Justia. Fellows v. American Campus Communities Services, Inc., No. 4:16-cv-01611-JAR After the case, ACC replaced “monthly” in its advertising with “installment” to describe how rent payments were structured.2KBIA. Settlement Approved in Student Housing Class Action
The Texas Class Action Over Missing Lease Language
The larger case began in October 2018, when four former tenants — Beth Berry, Brooke Berry, Yael Spirer, and Hailey Hoppenstein — sued American Campus Communities, Inc. and more than thirty subsidiaries on behalf of a proposed class of over 65,000 Texas tenants.3FindLaw. American Campus Communities, Inc. v. Berry, No. 03-21-00119-CV
Texas Property Code Section 92.056(g) requires residential leases to include specific language, in bold or underlined print, informing tenants of their remedies when a landlord fails to make repairs affecting health or safety. The plaintiffs alleged that ACC’s uniform leases left that language out entirely. ACC acknowledged the omission for leases from 2008 through 2018, and added the required language to its leases after the suit was filed.4Texas Civil Justice League. SCOTX Rejects Class Action Against Student Housing Provider5FindLaw. American Campus Communities, Inc. v. Berry, No. 21-0874
The stakes were substantial. Under one theory, plaintiffs argued ACC owed a statutory penalty of one month’s rent plus $500 per tenant. Under a second, they framed the omission as an illegal contractual waiver of the landlord’s duty to repair, which would carry penalties of one month’s rent plus $2,000 per tenant, plus attorney’s fees. Across 65,000-plus tenants, the plaintiffs were reportedly seeking a nine-figure recovery.5FindLaw. American Campus Communities, Inc. v. Berry, No. 21-0874
The trial court denied ACC’s motion for summary judgment in late 2020 and certified the class in February 2021, defining it as all Texas tenants under an ACC lease executed, renewed, or extended between October 1, 2014, and March 21, 2018. The Third Court of Appeals in Austin largely affirmed certification in September 2021.3FindLaw. American Campus Communities, Inc. v. Berry, No. 03-21-00119-CV
The Supreme Court of Texas reversed on April 21, 2023, and decertified the class. The Court held that class certification requires a “rigorous analysis” of the substantive law, rejecting what it called the “certify now and worry later” approach the lower courts had used. Applying that standard, it concluded the plaintiffs’ claims were “facially defective as a matter of law.” The Property Code, the Court explained, provides judicial remedies when a landlord fails to make repairs affecting health or safety, but it does not create a private cause of action for the mere omission of the notice language required by Section 92.056(g). The duty to repair exists regardless of what the lease says, so leaving the notice out was not a contractual waiver of that duty.5FindLaw. American Campus Communities, Inc. v. Berry, No. 21-08744Texas Civil Justice League. SCOTX Rejects Class Action Against Student Housing Provider The case was remanded, but the ruling ended the class litigation in practice.
Recurring Individual Tenant Complaints
Outside of class litigation, ACC has drawn a steady volume of individual complaints. Its Better Business Bureau profile shows 157 complaints over a three-year period, with 56 closed in the most recent 12 months. The company is not BBB-accredited. Service or repair issues (67) and billing disputes (48) were the largest categories.6Better Business Bureau. American Campus Communities BBB Complaints
A few disputes come up again and again. Tenants challenge move-out charges — cleaning fees, furniture replacement costs, and damage assessments they say are inflated or poorly documented. Early lease termination is another flashpoint, with tenants describing confusion over termination policies and the obligation to find a replacement tenant, or “relet,” on their own. Billing complaints range from transfer fees tenants say were never disclosed to disputes over whether payments were credited correctly. Reaching property managers and getting timely responses to account questions is a recurring frustration.7Better Business Bureau. American Campus Communities BBB Complaints
Who Owns ACC Now
ACC is no longer a public company. On April 19, 2022, it announced an all-cash acquisition by Blackstone’s Core+ perpetual capital vehicles, primarily Blackstone Real Estate Income Trust (BREIT), at $65.47 per share, valuing the deal at roughly $12.8 billion including assumed debt.8Blackstone. American Campus Communities Announces Transaction With Blackstone Funds Stockholders approved the transaction on August 4, 2022, and it closed shortly afterward, delisting ACC’s common stock from the New York Stock Exchange.9U.S. Securities and Exchange Commission. American Campus Communities Stockholder Approval Filing ACC continues to operate as one of the largest student housing providers in the country, now under Blackstone.