New York City sues Utah-based Extra Space Storage over 'bait-and-switch' claims

Lawsuit alleges the company engaged in predatory pricing and poor facility maintenance

Published on Feb. 14, 2026

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New York City has filed a lawsuit against Utah-based Extra Space Storage, accusing the company of operating a 'classic bait-and-switch scheme' that traps customers through 'predatory business practices'. The lawsuit alleges Extra Space would quickly and dramatically increase rental unit prices after customers moved in, often without notice, and failed to maintain advertised cleanliness standards, leading to vermin infestations and property damage.

Why it matters

The lawsuit highlights growing concerns over the practices of large self-storage companies, especially as the industry has seen significant consolidation in recent years. It raises questions about consumer protections and the need for greater regulation in the self-storage market.

The details

The lawsuit, filed in a New York state court, seeks full restitution and more than $5 million in civil penalties. It alleges that Extra Space would 'quickly and often dramatically' increase the prices of rental units after consumers moved their belongings in, sometimes by as much as 165% without notice. The company is also accused of changing locks and threatening to auction belongings to 'extort' consumers into paying higher rents or undisclosed late fees. Additionally, the lawsuit claims Extra Space often failed to maintain advertised cleanliness standards, leading to widespread vermin infestations, water damage and mold.

  • In early 2025, Queens consumer Jean Kellman began renting an Extra Space unit for $290 per month, but her rent was raised to $479 (a 165% increase) within just three months, without notice.
  • In October 2021, Alex Rodriguez began renting a Bronx unit from Extra Space to store his online business inventory and personal belongings, but soon discovered rats had infested the unit, damaging his property.

The players

New York City

The city government that has filed the lawsuit against Extra Space Storage.

Extra Space Storage

A Utah-based self-storage company that is being sued by New York City for alleged 'bait-and-switch' and 'predatory business practices'.

Jean Kellman

A Queens consumer who rented an Extra Space unit for $290 per month, only to have the rent increased by 165% to $479 within three months without notice.

Alex Rodriguez

A Bronx resident who rented an Extra Space unit to store his online business inventory and personal belongings, but found the unit infested with rats that damaged his property.

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What they’re saying

“New Yorkers are being squeezed everywhere, even just to store their stuff.”

— Zohran Kwame Mamdani, Mayor of New York City (Twitter)

“The self-storage Wild West ends now.”

— Zohran Kwame Mamdani, Mayor of New York City (Twitter)

What’s next

The judge in the case will decide whether to allow the lawsuit to proceed and potentially issue an injunction against Extra Space Storage's practices.

The takeaway

This lawsuit highlights the need for greater consumer protections and oversight in the self-storage industry, as large companies like Extra Space Storage are accused of engaging in predatory pricing and failing to maintain their facilities, causing significant harm to customers.