Colorado, FTC reach $24M deal over Greystar hidden fees

DENVER — Colorado Attorney General Phil Weiser and the Federal Trade Commission have reached a $24 million settlement with Greystar, one of the nation’s largest corporate landlords, after investigators found the company misled renters by advertising deceptively low prices and then charging undisclosed fees.

Weiser said the settlement holds Greystar accountable for practices that saddled tenants with mandatory charges not included in advertised rental rates.

“Addressing deceptive and hidden fees that trick consumers out of their hard-earned dollars is a top priority for our department,” Weiser said. “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 will not be tolerated in Colorado.”

Colorado and the FTC sued Greystar in January after an FTC Consumer Protection Bureau investigation found that, since 2019, the company had advertised rental units at prices that did not reflect recurring fees for services such as pest control, valet trash, package concierge access, utility administration, and certain amenities. Prospective renters often did not learn the full monthly cost until they received a lease, and typically after they had paid a nonrefundable application fee.

Under the settlement, Greystar must disclose the total monthly price upfront and clearly identify all fees, their purpose, their amount and whether they are mandatory. The company is also barred from requiring any upfront payment or deposit unless it first provides complete pricing information. The agreement includes consumer information protections, compliance reporting, and recordkeeping requirements.

Colorado will receive $1 million to be used for consumer reimbursement, enforcement efforts, education or other public welfare purposes. The FTC will receive $23 million for nationwide relief.

The settlement is separate from an antitrust lawsuit Weiser joined earlier this year that accuses major landlords, including Greystar, of using RealPage software to coordinate rent increases through algorithmic pricing. Weiser has previously reached agreements with Cortland and Greystar that limit the use of rent-setting algorithms and data-sharing platforms.