FTC Sues Greystar Over Hidden "Junk Fees" in Rental Pricing
The Federal Trade Commission (FTC) has filed a lawsuit against Greystar, the largest apartment owner in the U.S. with over 800,000 units, alleging that the company has deceived renters by charging undisclosed mandatory fees. The lawsuit claims that Greystar’s pricing practices have cost renters millions of dollars in extra charges that were not clearly advertised.
Greystar’s Defense vs. FTC’s Argument
“No resident at a Greystar-managed community pays a fee they have not seen and agreed to in their lease.”
– Official Greystar statement
The company argues that all fees are disclosed in the lease and that renters agree to them before moving in.
“To the extent that corporate landlords are not advertising their all-in pricing and are engaging in similar tactics, they are on notice that such conduct is illegal.”
– FTC statement on the lawsuit
The FTC contends that listing a base rent without mandatory fees is misleading. Even if fees are disclosed later, renters may have already committed by paying an application fee before learning the full cost of living there.
What Are These “Junk Fees”?
The lawsuit highlights common mandatory fees that are often added on top of the advertised rent, including:
- Trash valet services
- Preferred parking spaces
- Internet and cable packages
- Package lockers
The FTC clarifies that landlords can charge for extra services, but they must be optional and clearly disclosed upfront in the advertised price.
Potential Industry Impact
If the FTC prevails, the case could have major implications for the rental market:
- Landlords may be forced to use “all-in pricing” in advertisements, making total costs clearer.
- Other large property management companies with similar pricing models may also face scrutiny.
- The ruling could disrupt business models that rely on add-on fees to boost profits.
The lawsuit signals a broader crackdown on deceptive rental pricing. If successful, it could reshape how apartments are marketed and rented across the U.S.
What do you think? Should landlords be required to include all mandatory fees in advertised rent?
Let me know your opinion by posting comments to this blog.