By Katherine Hamilton
Greystar was sued Thursday for allegedly deceiving customers about monthly rent costs by tacking on hidden fees.
The Federal Trade Commission and the State of Colorado filed a complaint against the rental property manager alleging it has added hidden fees since at least 2019 that cost consumers hundreds of millions of dollars. Consumers often didn't discover the fees until after they had signed a lease or moved in, the FTC said.
Greystar allegedly added hidden fees worth tens to hundreds of dollars a month, the FTC said. Those fees included valet trash, package handling and utilities, among others. Consumers could not opt out of the fees, the FTC said.
In some cases, Greystar waited until after renters had paid an application fee or holding deposit before revealing the additional fees on top of rent, the complaint said.
Greystar manages more than 800,000 residential rental units in the U.S. and owns about 100,000. Property management includes advertising available units. Greystar keeps a percentage of all the rent and fees collected from tenants and applicants.
The FTC files a complaint when it has "reason to believe" that a company is breaking the law. The case will be decided by the court.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
January 16, 2025 15:43 ET (20:43 GMT)
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