FTC sues Greystar, America’s largest apartment owner, for hidden charges

The Federal Trade Commission filed a lawsuit Thursday against the largest apartment owner in the United States, Greystar Real Estate Partners, accusing it of charging its tenants hundreds of millions of dollars in hidden fees.

Greystar, which the National Multifamily Housing Council says manages nearly 800,000 apartments across the country, has consistently failed to inform potential tenants of mandatory fees for services including trash collection, pest control and delivery of packages, the FTC said in its complaint. Together, these apartment costs often add up to hundreds or even thousands of dollars each year. Many tenants, according to the agency, only found out about the fees after signing a lease or moving into a Greystar property.

The real estate giant’s pricing practices, since at least 2019, have in some cases included lease termination fees amounting to thousands of dollars, according to the lawsuit. These fees essentially lock tenants into leases that require them to pay more than the stated cost, according to the lawsuit.

“Through their actions, Greystar is making it harder for house hunters to shop around and choose a home that fits their budget,” said Colorado Attorney General Phil Weiser, who filed the FTC complaint. in a press release.

The lawsuit, filed in the final days of Lina Khan’s tenure as FTC chair, continues the Biden administration’s focus on cost containment in the rental housing sector. Last week, the Justice Department’s antitrust division expanded its lawsuit against real estate software company RealPage, originally filed in August, to include Greystar and five other landlords, accusing them of using algorithms in coordination to maintain rents. students. Greystar said in a statement that the company has never engaged in anti-competitive practices.