This week, Attorney General Phil Weiser announced a $24 million settlement with corporate landlord giant Greystar for deceptive advertising that lured renters to apply for rental housing, only to leave them on the hook for millions of dollars in mandatory, fixed fees not included in the advertised price of an apartment.
“Addressing deceptive and hidden fees that trick consumers out of their hard-earned dollars is a top priority for our department,” said Weiser. “In this case, we took action against Greystar for doing just that and have held them accountable for their conduct which jacked up rents. Other landlords are on notice that cheating tenants won’t be tolerated in Colorado.”
In January this year, Colorado and the Federal Trade Commission sued Greystar after an investigation by the FTC’s Consumer Protection Bureau uncovered Greystar’s deceptive pricing of rental housing in Colorado and other states since 2019. After attracting prospective tenants with deceptively low rental prices, Greystar failed to adequately disclose mandatory recurring fees charged to tenants for things such as pest control, valet trash service, package concierge service, utility administration fees, and certain amenities. The prospective tenant often could not see the actual fees or the total amount they were required to pay until they received the lease and usually after they paid a non-refundable application fee.
The settlement requires Greystar to disclose upfront the total monthly leasing price and to clearly and conspicuously disclose all fees or costs, the nature and purpose of the fee or cost, the amount of the fee or cost, and whether the fee or cost is mandatory. In addition, Greystar is prohibited from requiring tenants to make an initial payment or deposit without disclosing all pricing information upfront. Protections for consumer information are included in the settlement, as well as compliance reporting and recordkeeping requirements for the company.
The state of Colorado will receive $1 million in monetary relief to be held by the attorney general and used for reimbursement of actual costs and attorneys’ fees, future consumer protection or antitrust enforcement, consumer education, or public welfare purposes. The FTC will receive $23 million for nationwide relief including in Colorado.
In a press release announcing the settlement, Greystar stated: “Greystar has long championed transparency in the rental housing industry.” In recent years, Greystar has launched industry-leading transparent pricing initiatives and digital tools and encouraged technology partners to strengthen their own capabilities. Greystar’s investments and leadership in these areas show that we are well-positioned to support our clients in meeting evolving FTC and state-level requirements.”
