The Federal Trade Commission (FTC) has filed a lawsuit against Greystar, one of the largest property management companies in the United States, for deceptive practices involving hidden fees. Greystar, which manages over 800,000 rental units nationwide, including properties in Atlanta and Georgia, is accused of adding undisclosed costs to advertised base rents, leaving tenants with inflated bills.
Hidden Fees and Allegations
The civil complaint, filed in federal court in Denver, Colorado, alleges that since 2019, Greystar has imposed extra fees on tenants, including charges for pest control, trash, utilities processing, and mandatory media and smart home packages. These fees, often referred to as “junk fees,” could amount to hundreds of dollars monthly, effectively misleading renters about the true cost of living in their properties.
According to FTC officials, tenants often discovered these hidden fees only after paying non-refundable application fees or holding deposits. The lawsuit claims that Greystar buried these additional charges deep in lengthy lease agreements, making it difficult for renters to identify or opt out without incurring steep penalties, such as lease termination fees.
Colorado Attorney General Phil Weiser, who joined the FTC in filing the lawsuit, emphasized that these practices hinder renters from comparing costs and choosing homes within their budgets.
Greystar’s Response
Greystar has strongly denied the allegations, describing the FTC’s lawsuit as “headline-grabbing litigation” based on “misrepresentations of the facts and flawed legal theories.” The company expressed frustration over the lack of clear guidelines from the FTC on fee disclosures, arguing that uniform regulatory standards would benefit the industry and consumers alike.
FTC’s Broader Actions
This lawsuit is part of a larger effort by the FTC to address unfair practices in the rental housing market. Outgoing FTC Chair Lina Khan has prioritized enforcement actions against corporate landlords accused of exploiting tenants and raising rents through illegal means.
In September, the FTC reached a $48 million settlement with Invitation Homes, another major rental company, over similar allegations involving junk fees, withheld security deposits, and unjust eviction practices during the COVID-19 pandemic.
The FTC is also investigating the impact of large single-family rental investors—those owning over 1,000 rental homes—on housing prices and rents.
Industry-Wide Concerns
The Department of Justice (DOJ) has also taken action against Greystar. In January, it sued the company and five other landlords for alleged price-fixing practices in collaboration with tech company RealPage.
Greystar’s legal challenges come as the FTC implements new rules to enhance pricing transparency across industries, including live event tickets, hotels, and vacation rentals. While the rental housing market was not explicitly included in these new regulations, the FTC stated that it retains the right to address violations on a case-by-case basis.
A Political Transition
The future of these enforcement efforts remains uncertain as the Trump administration prepares to take office. President Donald Trump has nominated Republican Andrew Ferguson to lead the FTC. Ferguson, who approved the lawsuit against Greystar, has criticized the current FTC’s regulatory approach, calling it an obstacle to economic growth.
Despite the political changes, the lawsuit signals ongoing scrutiny of rental industry practices, with the FTC and DOJ continuing to hold landlords accountable for unfair and deceptive practices.
Disclaimer – Our team has carefully fact-checked this article to make sure it’s accurate and free from any misinformation. We’re dedicated to keeping our content honest and reliable for our readers.
