Storage Space Customers Could Get Money Back Under $1.7 Million NYC Settlement

NEW YORK, NY— People who rented storage units from Extra Space could receive money back after New York City reached a $1.7 million settlement with the self-storage company over allegations that it misled customers about prices, charged improper fees and auctioned off personal belongings without sufficient notice.

The settlement requires Extra Space to pay $1 million in restitution to affected consumers and more than $700,000 in civil penalties.

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It also requires the company to change how it advertises prices, raises rates and handles delinquent accounts before restricting access to storage units or selling customers' property.

City officials announced the agreement July 9.

The settlement resolves a lawsuit the Department of Consumer and Worker Protection filed in February.

"People pay Extra Space to protect the things that matter most to them, not to have those belongings neglected, held hostage or auctioned off," Mayor Zohran Mamdani said.

"This company — like others in this industry — lured New Yorkers in with low prices, jacked up prices, let units rot and took people's property when they couldn’t keep up."

What Did The City Accuse Extra Space Of Doing?

The City's investigation began after consumer complaints increased.

Officials reviewed more than 100 complaints involving Extra Space and alleged the company violated New York City's Consumer Protection Law beginning in 2023.

According to the City, investigators found the company:

• Advertised clean storage units while renting units affected by vermin infestations, rodent droppings, water damage and mold.
• Raised customers' monthly rates shortly after move-in despite written assurances promising 30 days' advance notice before price increases.
• Charged hidden fees, including some that continued after customers canceled their contracts.
• Restricted customers' access to storage units and auctioned personal belongings after missed payments without providing required due process.

What Changes Must Extra Space Make?

Under the settlement, Extra Space agreed to:

• Stop deceptive advertising about prices and facility conditions.
• Provide stronger due process protections before restricting access to storage units or auctioning customers' belongings.
• Give customers adequate notice before increasing rates.
• Create a relocation assistance program for affected consumers.
• Improve customer service and compliance practices.

The agreement arrives weeks before New York City's new self-storage licensing program begins.

Starting Aug. 25, every self-storage facility operating in New York City must obtain a Department of Consumer and Worker Protection license under Local Law 171 of 2025.

Why Does This Matter To Storage Customers?

More New Yorkers rely on self-storage as housing costs rise and apartment space shrinks.

City officials said New York has more than 300 self-storage facilities, and Extra Space generated one of the highest numbers of consumer complaints.

Officials said the settlement establishes compliance requirements they expect licensed self-storage companies to follow once the new licensing program begins.

Department of Consumer and Worker Protection Commissioner Samuel A.A. Levine said investigators found repeated problems affecting customers.

"Not only did this company rip customers off with bait-and-switch pricing and junk fees—they actually auctioned off people's personal belongings after they protested the price increases," Levine said.

What Customers Should Know

Customers who rented storage units from Extra Space and experienced conduct covered by the settlement may be eligible for restitution.

The Department of Consumer and Worker Protection encourages consumers to file a complaint and include supporting documentation if available.