FTC & Colorado Sue Property Manager Greystar For Hidden Fees

The Federal Trade Commission and the state of Colorado sued the largest nationwide third party manager of multi-family rental properties, Greystar, for deceiving renters about prices by tacking on undisclosed fees. The suit alleges Greystar and subsidiaries violated the FTC Act, the Gramm-Leach-Bliley Act, and the Colorado Consumer Protection Act.

Greystar manages about 800,000 apartments. The lawsuit alleges Greystar has been charging tenants undisclosed “junk fees” since at least 2019, adding up to hundreds of millions of dollars. Renters often do not find out about the hidden fees until after they pay an application fee, put down a deposit, sign a lease or move in. Renters who find out about the fees after they are approved for a unit and refuse to sign the lease are not refunded for their the application fees or deposits. That can amount to hundreds of dollars.

After a renter is accepted, mandatory fees the FTC and Colorado cite as examples of Greystar’s hidden costs include fees for “valet trash,” package handling, utilities, utility bill distribution, “verification fees” for consumers whose renter’s insurance is not provided by Greystar, and media/smart home packages. The FTC and Colorado say renters are not allowed to opt out of fees even for services they do not want or use.

Click here for more details from the FTC announcement.