Colorado’s largest landlords are set to make a significant change by disclosing the total price of their apartments to potential tenants. This move comes after a lawsuit that accused Greystar, a major property management company, of not transparently listing additional fees in their advertisements.
As part of the agreement with federal regulators and the Colorado Attorney General’s Office, Greystar will pay $1 million to Colorado for regulatory oversight and $23 million to the Federal Trade Commission to refund renters, including those in Colorado.
The settlement mandates that Greystar must now list the full rental price of their units, including any fees, in all advertising. They are also required to specify whether the fees are optional or mandatory, the purpose of the fees, and when tenants will be charged.
Attorney General Phil Weiser emphasized the importance of holding companies accountable for deceptive practices that can inflate rents. The settlement also serves as a warning to other landlords that dishonest practices will not be tolerated in Colorado.
Landlords pile “junk fees” on Colorado renters, sometimes adding hundreds to advertised prices
Greystar acknowledged in a separate statement that the settlement aims to improve transparency in the multifamily housing industry and align with the FTC’s expectations for rental housing advertising.
This settlement follows a previous agreement between Weiser and Greystar related to the company’s rent-setting algorithm. The recent lawsuit focused on Greystar’s alleged violations of state and federal laws through misleading fee practices that increased rental costs beyond advertised prices.
Christopher Mufarrige, director of the FTC’s consumer protection bureau, highlighted how Greystar’s actions misled consumers by initially advertising lower rent prices and then adding mandatory fees later in the process.
After concerns raised by JS regarding hidden fees impacting Colorado tenants, state lawmakers passed a bill to enhance price transparency and restrict certain fees, such as those for common-area maintenance, effective from January 1.
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