Greystar to pay $24M, end hidden fee practices under FTC, Colorado settlement

Greystar — the nation’s largest multifamily rental property manager — has agreed to pay $23 million to the Federal Trade Commission (FTC) and $1 million to the state of Colorado.

The settlement follows allegations that Greystar misled renters by advertising low monthly prices while adding undisclosed mandatory fees.

“Greystar misled consumers by advertising low rent prices and then adding mandatory fees at the end of the sales process,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

“At a time when Americans are struggling to find affordable housing, the FTC is focused on monitoring the housing marketplace to ensure that competitors are meaningfully competing on price and that consumers receive transparent pricing.”

In January 2025, the FTC and Colorado alleged that Greystar violated the FTC Act, the Gramm-Leach-Bliley Act and the Colorado Consumer Protection Act by misrepresenting rental costs.

According to the complaint, Greystar advertised deceptively low prices that excluded fixed, mandatory monthly fees rather than showing the total amount renters were required to pay.

Under the settlement, $23 million will be used to refund consumers affected by Greystar’s practices.

“Greystar has long championed transparency in the rental housing industry,” the company stated Tuesday. “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.”

Provisions also require Greystar to refrain from misrepresenting rental prices or fees; to prominently disclose total monthly leasing costs when advertising base rent or partial pricing; and to clearly list all fees — including their purpose and whether they are mandatory — before collecting any payment such as a nonrefundable application fee.

The commission voted 2-0 to authorize filing the final order in the U.S. District Court for the District of Colorado.

FTC Chairman Andrew Ferguson said he’s directing staff to begin drafting a rule to address “unfair or deceptive fees in rental housing.”

“I applaud the Commission staff’s hard work in investigating and litigating this important
case, and in obtaining a powerful resolution for American consumers,” Ferguson said.

“But the Commission’s work on this case has revealed that the problem involving misleading pricing representations in America’s rental markets is not limited to Greystar, and today’s order will not fully resolve this problem.”

Additional legal action

Last month, a $7 million settlement agreement with Greystar was announced by California Attorney General Rob Bonta — part of a coalition of nine state attorneys general pursuing antitrust claims tied to RealPage software.

The settlement requires Greystar to stop using software that employs competitively sensitive information to align rents, and to cooperate in the ongoing prosecution of RealPage and other landlords.

Greystar recently settled a separate class-action lawsuit related to RealPage software, with that payout totaling $50 million.