Tenants at Pasadena Complex Allege Unlawful Fees After Sale to Global Real Estate Firm

At a press conference on Wednesday, tenants at a Pasadena apartment complex said they have been subjected to new fees, reduced services and retaliatory treatment since the property was purchased by a global real estate investment firm earlier this year.

Members of the Pasadena Gateway Villas Tenants Association, representing 34 households at the 140-unit complex at 290 N. Hudson Ave., said conditions changed sharply after new owner Hines acquired the property about nine months ago. 

Hines is an international real estate firm. 

Tenants allege that management pressured residents to sign new leases that stripped away previously included amenities while adding separate charges for services that had been covered by rent. 

Those services include parking, pest control, trash collection, hot water and package delivery, tenants said. 

Several residents reported paying an additional $400 to $500 per month in new fees, in addition to rent increases they say ranged from 8% to 20%. 

Tenants contend the changes amount to an attempt to bypass California’s cap on annual rent increases. 

Writing from New York, Hines Public Relations Director Marisa Monte-Santoro said the company would respond by Friday to Pasadena Now’s questions about the tenants’ claims. 

During the press conference, eight-year resident Terey Ross said that “Before Hines took over ownership and management of the building, housing here was stable and predictable.”

Ross said tenants were given limited notice of new lease terms and felt pressured to sign agreements without adequate review. 

“Tenants are not asking for special treatment — we are asking for lawful rental practices, transparency, and for housing terms not to be unilaterally changed,” Ross said. 

Housing advocates say such practices are increasingly common. “Junk fees have become a popular tactic for landlords to squeeze more money out of already cash-strapped tenants,” said Ryan Bell, a Southern California organizer with Tenants Together. 

Tenants are calling for a return to their original lease terms and an end to what they describe as retaliatory practices. They are also urging state lawmakers to support legislation aimed at curbing added rental fees and tightening rent caps.