FTC and State of Colorado Sue Greystar Over Alleged Hidden Fees

The Federal Trade Commission (FTC) and the State of Colorado have filed a lawsuit against Greystar, the nation's largest multi-family rental property manager, alleging deceptive practices related to undisclosed fees charged to tenants.

Allegations Against Greystar

The lawsuit claims that Greystar advertised rental prices without including numerous mandatory fees, such as those for trash collection and package delivery services. According to the FTC, these hidden fees have cost consumers living in Greystar properties hundreds of millions of dollars since at least 2019. Tenants often discovered these additional charges only after signing a lease or moving in.

FTC Chair Lina M. Khan stated, "The FTC is suing Greystar for deceptively advertising low monthly rents only to later saddle tenants with hundreds of dollars of hidden junk fees."

Greystar's Response

In response to the lawsuit, Greystar issued a statement expressing disappointment with the FTC's decision to pursue litigation. The company asserted that the complaint is based on "gross misrepresentations of the facts and fundamentally flawed legal theories." Greystar emphasized that all fees are disclosed and agreed upon in lease agreements, stating, "No resident at a Greystar-managed community pays a fee they have not seen and agreed to in their lease."

Broader Implications

This legal action is part of a wider effort by federal and state authorities to address hidden fees in various industries, including housing. The outcome of this case could have significant implications for property management practices nationwide, potentially leading to increased transparency and regulatory changes to protect consumers from undisclosed charges.

References

• Federal Trade Commission. (2025, January 16). FTC and State of Colorado take action against Greystar, the nation’s largest multi-family rental property manager. FTC.gov.
• Federal Trade Commission. (2025, January 16). FTC and State of Colorado v. Greystar et al. timeline. FTC.gov.
• Greystar. (2025). Greystar responds to FTC lawsuit. Greystar.com.
• Pressman, A. (2025, January 16). FTC sues Greystar, saying the property manager used hidden fees to swindle renters out of millions. AP News.