On January 16, 2025, The Federal Trade Commission (“FTC”) and State of Colorado filed a complaint against Greystar, the largest multifamily rental property manager in the U.S., for allegedly misleading consumers about rent prices. The government claims that Greystar advertised rental units at one price but added hidden mandatory fees that tenants were often unaware of until after they signed leases or moved in. These fees, which can range from $10 to hundreds of dollars a month, include charges for things like valet trash service, package handling, and utility management. The total fees often add up to significant amounts, sometimes increasing monthly rent by hundreds of dollars.
FTC alleges that consumers were frequently not informed of these fees upfront and only discovered them after providing personal information, paying application fees, or finding them deep within lease agreements. The so-called hidden fees have resulted in consumers paying much more than the advertised rent price. In some cases, consumers lost their application fees and holding deposits when they chose not to sign the lease after learning of the hidden fees.
The complaint accuses Greystar of violating various consumer protection laws, including the FTC Act and the Colorado Consumer Protection Act. In accordance with its mission, the FTC is seeking to address deceptive practices in the residential rental field and ensure that rental prices are transparently advertised. Clients managing or operating multifamily rental properties should especially take notice of this action and confirm their business practices will withstand scrutiny. For more information and guidance on managing risk in this area of law, please contact AGG partner Anuj Desai or another member of AGG’s Advertising or Real Estate practices.