The Federal Trade Commission is planning to file a lawsuit against apartment management company Greystar—which is the largest apartment management company in the U.S.—alleging it hid fees from potential tenants, according to reports from The Wall Street Journal and Bloomberg on Monday.
The Federal Trade Commission will reportedly allege the apartment management company falsely ... [+]
The lawsuit alleges Greystar falsely advertised rental prices by not informing potential tenants of mandatory fees that ranged from tens to hundreds of dollars monthly, Bloomberg reported, citing anonymous people familiar with the investigation.
The suit may allege Greystar used deceptive pricing practices when it allegedly failed to disclose fees to potential tenants for things like pest control and trash services, The Wall Street Journal reported.
The suit could be filed as soon as this week, though The Wall Street Journal noted it is still possible for Greystar and the FTC to reach a settlement.
Forbes has reached out to the FTC and Greystar for comment.
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The Charleston-based property management company was founded in 1993 by current CEO Bob Faith, who “envisioned the need for a rental housing industry leader.” The company says it grew to manage 50,000 units in 2002, 100,000 units in 2008 and 200,000 in 2013. Greystar does more than property management, and works to “own, operate, and develop multifamily, student, and senior housing” worldwide, according to its website.
Greystar’s brands in the U.S. include Bellamy by Greystar, Birchway by Greystar, Ltd. by Greystar, Summerwell by Greystar, Album by Greystar and more.
The Department of Justice added Greystar and five other large landlords to a separate antitrust lawsuit against RealPage last week, alleging the companies “participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters.” Greystar said in a statement responding to the allegations that it “has and will conduct its business with the utmost integrity. At no time did Greystar engage in any anti-competitive practices,” and was “disappointed” the DOJ added it to the lawsuit.
798,272. That’s how many units Greystar managed in 2024, according to the National Multifamily Housing Council. That makes Greystar far-and-away the largest management company in the U.S., with the next largest company, Asset Living, managing 291,322 units.
The FTC under President Joe Biden has targeted hidden fees, and in December it announced a bipartisan rule banning junk fees in ticketing and hotels. In July 2023, Biden said his administration was cracking down on rental junk fees through increased transparency on total upfront costs, legislative action and more research from the Department of Housing and Urban Development on housing junk fees. The following July, he called on Congress to pass legislation that would require corporate landlords to cap rent increases on existing units at 5%.
FTC Prepares to Sue Largest U.S. Apartment Landlord Over Hidden Fees (The Wall Street Journal)
Greystar to Face FTC Lawsuit Over Misleading Rental Fees (Bloomberg)