Greystar Hit With $24 Million Deal To End Deceptive Rent Pricing

Key Takeaways

• Enforcement Action: Greystar will pay $24 million to resolve allegations it misled renters by hiding mandatory monthly fees.
• Full Price Disclosure: The order requires Greystar to clearly display the total monthly leasing price and all mandatory fees before collecting any payment.
• Consumer Redress: $23 million of the settlement will be returned to renters harmed by the deceptive pricing practices.
• Ongoing Regulatory Scrutiny: The FTC signaled additional action may be coming to address deceptive housing fees across the rental market

Deep Dive

America’s largest apartment manager is being forced to clean up how it markets rent to prospective tenants. Greystar has agreed to pay $24 million and end what regulators call a pattern of hiding unavoidable monthly fees behind deceptively low rent ads. The resolution follows a joint lawsuit from the Federal Trade Commission and the State of Colorado, which accused the real estate giant of luring renters in with prices that didn’t reflect what they would actually pay to live in its properties.

For years, Greystar’s listings often separated fixed “services fees” and other add-ons from advertised base rents, and these disclosures sometimes came only after applicants paid nonrefundable fees. Regulators say that left renters blindsided in a housing market where every dollar counts.

“Americans are struggling with affordability. They deserve honest pricing upfront,” said FTC Consumer Protection Bureau Director Christopher Mufarrige, who called the case part of a broader effort to ensure price transparency in the rental market.

The deal requires Greystar to overhaul its practices:

• Listings must show the true total monthly cost, including every mandatory fee, just as prominently as the base rent
• Any extra charges must be clearly identified before someone pays an application fee
• The company is banned from misrepresenting rental pricing in any form

Of the $24 million settlement, $23 million is intended for renters who paid more than they bargained for. Another $1 million will go to Colorado.

A Pattern of Housing Market Scrutiny

This latest enforcement action comes as Greystar faces ongoing legal and regulatory pressure on its rental pricing strategies. Just months ago, the firm agreed to a $50 million settlement, the largest share in more than $141 million in proposed class-action payouts, to resolve allegations that it conspired with other large landlords to inflate rent prices using RealPage’s revenue management software.

In that pricing-fixing case, plaintiffs say the software used non-public leasing data to push up rents across competitive markets, harming millions of tenants nationwide. While Greystar said it settled to avoid protracted litigation, the dispute continues for roughly 20 remaining defendants, including RealPage itself.

The case highlights a growing regulatory crackdown on “drip pricing” in the housing sector, a concern that FTC Chair Andrew N. Ferguson says extends far beyond a single landlord. In a statement, he called hidden fees in rental housing a widespread problem and directed staff to begin developing a rule targeting misleading rent practices nationwide.

The order is awaiting approval by a federal judge in Colorado. Once signed, it will carry the weight of law.

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