Local landlord
Youssef (Joe) Berrada and his property management company, Milwaukee-based
Berrada Properties Management, Inc., will pay a $1.7 million settlement following allegations that Berrada violated the state’s landlord-tenant law.
In 2021, Wisconsin Attorney General Josh Kaul
filed a civil enforcement action against Berrada and his company.
The complaint alleged that Berrada and Berrada Properties included illegal provisions in leases, illegally charged tenants late rent fees and court fees, and engaged in illegal security deposit deduction practices.
The complaint also alleged that Berrada Properties engaged in several illegal practices while remodeling newly acquired buildings with existing tenants, including: forcing tenants out of their apartment, throwing away tenant property, and entering apartments at unreasonable times and without proper notice.
As part of the settlement, Berrada and Berrada Properties will pay a civil forfeiture in the amount of $986,455, along with $249,225 in attorney fees and related costs.
Following the settlement, Berrada has agreed to vacate and seal eviction judgments affected by late rent fees or attorney fees that the state alleged were illegally charged to tenants.
Berrada has also agreed to put in place several remediation programs. First, Berrada and Berrada Properties will run an income-based rental program for up to 300 of their tenants for a period of three to five years. They will also participate in an eviction diversion program.
Berrada Properties Management has agreed to establish a $1.3 million credit account to make rent assistance grants to qualifying tenants. Berrada Properties Management has also agreed to offer up to $400,000 in move-out assistance payments to tenants facing eviction to help the tenant move before an eviction is filed.
The settlement also includes a restitution program that requires Berrada Properties Management to make payments to tenants who paid late rent or attorney fees that were not authorized, did not get full credit for their security deposit, had property confiscated, or were subjected to a self-help eviction.
Berrada controls more than 200 limited liability companies that combined own nearly 9,000 apartment units in Milwaukee and Racine.
Even though a settlement has been reached, Berrada and Berrada Properties do not admit liability for any claim alleged in the state’s lawsuit, or to any violation of law or wrongdoing alleged by the state.
