Blueground’s acquisition of Tabas in Brazil has come under scrutiny due to allegations of nonpayment by property owners. Ami Goldman, a property owner and tech entrepreneur in Brazil, leased his apartment to Tabas in 2021, but claims that the company stopped paying him around $1,200 per month in rent, condo fees, and city taxes. This has led to legal action by Goldman and other property owners, with around 80% of lawsuits against Tabas dealing with similar issues of nonpayment. Some property owners have even filed complaints with the police, leading to ongoing investigations.
Tabas operates by leasing properties from owners for multiple years, renovating them, and offering them to mid- to long-term guests, including corporations. The company manages over 1,300 units in cities like São Paulo, Rio de Janeiro, Brasília, and Mexico City. Similar to Blueground, Tabas focuses on furnishing modern and sophisticated apartments, with a strong emphasis on tech and design attributes, as well as flexible stay options. However, the allegations of nonpayment against Tabas have highlighted some operational challenges for the company.
Goldman’s lawsuit against Tabas seeks the payment of unpaid rents, fees, and taxes, as well as the cancellation of his contract with the company. He claims that despite his attempts to communicate with Tabas about maintenance charges not covered in the contract, he has received no response. The Blueground spokesperson emphasized that these issues in Brazil represent isolated cases and do not reflect the overall performance of Tabas or Blueground. They also highlighted Tabas’ growth, with the addition of 650 properties from institutional landlords in the past six months and reiterated their commitment to supporting Tabas in the flexible rental market.
The situation in Brazil has raised concerns about Tabas’ operations and payment practices, with multiple property owners accusing the company of nonpayment. Goldman’s lawyer, Marcela Miranda Valério, represents 60 property owners in lawsuits against Tabas, with many more filing similar complaints. Authorities are investigating these allegations, and there is ongoing legal action against the company. Tabas has yet to respond to Goldman’s lawsuit, which seeks both payment and the cancellation of the contract.
The Blueground spokesperson maintained that Tabas is following the terms outlined in the agreements with landlords but acknowledged that there are differing interpretations of contract terms, leading to legal escalation. Despite the challenges faced by Tabas in Brazil, the company has seen growth and continues to expand its portfolio, acquiring properties from institutional landlords. Blueground remains committed to supporting Tabas in resolving these cases appropriately and in compliance with all contractual obligations. The allegations of nonpayment against Tabas have highlighted the complexities of the prop-tech model and the challenges of operating in the flexible rental market.
