FTC Sues Greystar for Allegedly Deceptive Practices Targeting Renters

The Federal Trade Commission (FTC) and the state of Colorado have filed a lawsuit against Greystar, one of the largest property management companies in the United States, alleging deceptive practices that resulted in renters being charged undisclosed fees. The suit claims these practices swindled renters out of hundreds of millions of dollars and violated federal and state consumer protection laws.

Undisclosed Fees and Alleged Misconduct

Greystar, which manages approximately 800,000 rental units nationwide, is accused of failing to disclose various fees, including charges for trash collection and package delivery, on apartment rental listings. According to the FTC, renters were often unaware of these additional costs until late in the rental process, sometimes after submitting application fees or reviewing lengthy lease agreements.

The FTC alleges that these hidden fees were not clearly outlined on property listing platforms, even when those platforms included sections specifically for such information. In some cases, renters only discovered the additional costs after signing lease agreements that spanned as many as 60 pages.

Challenges in a Tight Housing Market

The lawsuit comes at a time when renters are already struggling with skyrocketing housing costs. Nearly half of all U.S. renters spend more than a third of their income on rent, leaving many in precarious financial situations. The case highlights concerns about transparency and fairness in the rental market, where unexpected fees can exacerbate financial hardships.

Greystar’s Defense

In a statement posted on its website, Greystar denied the allegations, claiming that all fees were disclosed and agreed to in lease agreements. The company criticized the FTC’s decision to pursue the lawsuit, arguing that the case was based on a misrepresentation of facts and legal standards.

What’s Next

The FTC’s bipartisan commissioners unanimously approved the decision to file the lawsuit. The case will now move through the legal process, potentially setting a precedent for how property managers disclose fees in rental agreements.

If the FTC and Colorado prevail, the outcome could lead to changes in transparency requirements for rental listings and provide some relief to renters facing rising costs.