The Federal Trade Commission (FTC) and the Colorado Attorney General have filed a lawsuit against Greystar Real Estate Partners, accusing the company of collecting over $100 million in hidden fees from tenants across several states, including Nevada, California, Colorado, and Utah. The complaint alleges that Greystar employed deceptive advertising techniques by omitting mandatory fees from the advertised rental prices, thereby misleading potential tenants.
The lawsuit claims that between 2019 and 2022, Greystar collected these hidden fees on behalf of property owners. It also highlights that tenants often face challenges in seeking recourse; for instance, if they discover the actual cost before signing a lease and decide to withdraw, they cannot recover the application fees they have already paid. Furthermore, tenants wishing to terminate their lease are reportedly subjected to high termination fees.
Greystar, which manages numerous properties in the Las Vegas Valley, has responded to the allegations by stating that the FTC’s complaint is based on misinformation and flawed legal theories. The company argues that the practice of advertising base rent is an industry-wide standard, not an attempt to conceal fees from tenants. Greystar insists that all fees are disclosed and agreed upon in the lease agreements.
The lawsuit was filed just before President Joe Biden left office, and the case remains open. Greystar, led by founder Bob Faith, manages a substantial real estate portfolio globally and has committed to defending itself vigorously against the claims.