WASHINGTON, D.C. — The Federal Trade Commission (FTC) and the State of Colorado have filed a joint complaint against Greystar, the nation’s largest apartment property manager, alleging deceptive practices that concealed mandatory fees from tenants. According to the complaint, these “hidden fees” have cost consumers hundreds of millions of dollars since 2019, often inflating rental costs far beyond advertised prices and trapping tenants in costly leases.
At issue are additional charges such as “valet trash” fees, utility fees, package handling fees, and other non-optional services. These costs, often undisclosed in rental advertisements, ranged from tens to hundreds of dollars per month, causing tenants to pay significantly more than expected over the length of their leases.
FTC Chair Lina M. Khan criticized the company’s conduct, stating, “The FTC is suing Greystar for deceptively advertising low monthly rents only to later saddle tenants with hundreds of dollars of hidden junk fees. The FTC should continue its work taking on corporate landlords that use illegal tactics to jack up rent, exploit tenants, and deprive Americans of safe and affordable housing.”
The complaint alleges that Greystar actively misled consumers about pricing by omitting mandatory fees from third-party listings on platforms like Zillow, as well as on its own websites. Many renters learned about these charges only after submitting personal information, paying substantial non-refundable deposits, or signing lengthy lease agreements. Colorado Attorney General Phil Weiser highlighted the harm to consumers, stating, “Because of Greystar’s deceptive advertising and hidden fees, tenants are on the hook in their lease for hundreds, if not thousands, of dollars more than they anticipated that their apartment would cost.”
Weiser added, “Through their actions, Greystar is thwarting apartment hunters from comparison shopping and choosing a home that fits within their budget. To the extent that other corporate landlords are not advertising their all-in pricing and are engaging in similar tactics, they are on notice that such conduct is illegal and will not be tolerated in Colorado.”
Greystar, which manages more than 800,000 residential rental units across the United States, allegedly failed to disclose these fees clearly—even in sections of listing sites specifically designated for rental costs. According to the complaint, mandatory charges often surfaced deep within lease agreements, typically 40 to 60 pages long, or after significant application fees were paid.
For tenants who objected upon discovering the hidden costs, Greystar allegedly refused to refund application fees or deposits, adding further financial strain. Complaints from consumers cited in the filing described frustration and financial hardship as a result of these practices.
The joint legal action, which alleges violations of the FTC Act, the Gramm-Leach-Bliley Act, and the Colorado Consumer Protection Act, seeks to hold Greystar accountable and set a precedent for transparent rental pricing. This case marks a significant move by regulators to curb deceptive practices in the housing market, with implications for property management firms nationwide.
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