The Federal Trade Commission (FTC) has recently taken legal action against major property management companies, alleging deceptive practices that have financially harmed renters.
In January 2025, the FTC, in collaboration with the state of Colorado, filed a lawsuit against Greystar Real Estate Partners, the largest apartment landlord in the United States. The lawsuit alleges that Greystar engaged in deceptive pricing by advertising low rental rates while imposing mandatory yet undisclosed fees for services such as trash collection and pest control. These fees, often revealed only after prospective tenants had paid nonrefundable application fees or submitted personal information, sometimes increased monthly costs by more than 10% over the advertised rates. The FTC contends that these practices have cost renters hundreds of millions of dollars in unexpected expenses.
Earlier, in September 2024, the FTC reached a $48 million settlement with Invitation Homes, the largest U.S. landlord for single-family homes. The FTC accused Invitation Homes of misleading renters by imposing hidden fees for services like air filter delivery and smart home technology between 2021 and 2023, without upfront disclosure. Additionally, the company was alleged to have unfairly withheld security deposits and rented homes in poor condition. The settlement funds are intended to reimburse affected renters, though Invitation Homes did not admit to any wrongdoing.
These actions by the FTC underscore a broader initiative to enhance transparency and protect consumers from hidden or deceptive fees in the rental housing market.
