Greystar, the nation’s largest multifamily rental property manager, has reached a $23 million settlement with the Federal Trade Commission (FTC) and a $1 million settlement with the State of Colorado to resolve charges that it misled consumers about monthly rent costs by tacking on hidden fees on top of advertised prices.
Last January, the FTC and Colorado alleged Greystar misrepresented the true cost of renting a Greystar property by displaying a deceptively low rental price that excluded several fixed, mandatory monthly fees. The company was accused of running afoul of the FTC Act, the Gramm-Leach-Bliley Act, and the Colorado Consumer Protection Act.
“Greystar misled consumers by advertising low rent prices and then adding mandatory fees at the end of the sales process,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “At a time when Americans are struggling to find affordable housing, the FTC is focused on monitoring the housing marketplace to ensure that competitors are meaningfully competing on price and that consumers receive transparent pricing.”
“Addressing deceptive and hidden fees that trick consumers out of their hard-earned dollars is a top priority for our department,” said Colorado Attorney General Phil Weiser. “In this case, we took action against Greystar for doing just that and have held them accountable for their conduct which jacked up rents. Other landlords are on notice that cheating tenants won’t be tolerated in Colorado.”
Greystar issued an unattributed statement that said, “The agreement contains no admission of wrongdoing, and Greystar continues to maintain, as it has from the start of this matter, that its advertising has always been transparent, fair, and fully consistent with the longstanding industrywide practice of advertising base rent to potential residents. The agreement with the FTC puts an end to expensive litigation between the FTC and Greystar, brings clarity to the FTC’s position for the industry, and allows Greystar to continue to focus on its residents and clients and move the industry forward.”
