Major Rental Company Faces $100 Million Lawsuit Over Hidden Fees

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Greystar, the largest manager of multi-family rental properties in the United States, is facing a significant lawsuit filed by the Federal Trade Commission (FTC) and the state of Colorado. They allege that the company collected over $100 million in improper fees from tenants across multiple states, including Utah, Colorado, Nebraska, and California, between 2019 and 2022.

The legal action was prompted by Mallory Rutkoske, a former tenant in Salt Lake City, who received an unexpected cleaning bill after moving out, despite no such fee being disclosed in her lease agreement. After winning her dispute in small claims court, Rutkoske's case drew attention to broader claims about Greystar's practices regarding undisclosed fees.

According to the FTC, Greystar's rental agreements often include hidden costs that are not apparent in rental listings, leaving many tenants unaware until they review the fine print. For example, potential renters have reported discovering additional monthly fees only after navigating through several links during the online application process.

The lawsuit seeks to compensate affected tenants and intends to prohibit Greystar from continuing these practices. In response, Greystar maintains that it adheres to long-standing industry practices and insists that all fees are clearly outlined in the lease agreements.

This case aligns with a national push against "junk fees," with the Biden administration advocating for greater transparency in rental pricing. The movement comes after multiple reports have shown that many tenants face unexpected costs, including application and late fees.

In light of the ongoing lawsuit, housing advocates are urging renters to meticulously review lease agreements and seek legal counsel to dispute any unsubstantiated charges.

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