Greystar, the nation’s largest apartment owner and manager with holdings of more than 100,000 units, has settled a far-reaching suit by the Federal Trade Commission and the State of Colorado, over deceptive advertising that conceals hidden rental fees.

“Addressing deceptive and hidden fees that trick consumers out of their hard-earned dollars is a top priority for our department,” said Colorado Attorney General Phil Weiser in a news release announcing the settlement.

An investigation by the federal Consumer Protection Bureau uncovered a pattern of deceptive pricing carried out since 2019. According to Weiser’s office, which will receive $1 million on behalf of the state in the settlement, Greystar used deceptively low prices to lure tenants while failing to disclose recurring fees for pest control, trash and concierge service, utility administration, and amenities.

Prospective renters, Weiser’s office said, were unable to see required fees until after they had received a lease and had paid non-refundable application fees.

Following the settlement, Greystar will be required to disclose total monthly leasing prices, including all fees and their purposes. Greystar is also prohibited from requiring tenants to make a deposit without disclosing the complete pricing.

$1 MILLION SETTLEMENT

The $1 million received by Colorado in the settlement reportedly will be held by Weiser’s office and used for “reimbursement of actual costs and attorneys’ fees, future consumer protection or antitrust enforcement, consumer education, or public welfare purposes,” according to the announcement. The FTC will receive $23 million for nationwide relief.

Weiser’s office noted that Tuesday’s settlement is apart from an antitrust lawsuit the office had joined earlier in the year alleging that some large landlords, including Greystar and the apartment management firm Cortland, have used “algorithmic pricing schemes” that apply non-competitive pricing data to hike rents. Settlements have previously been reached with Cortland and Greystar on the issue.

Large properties owned or operated by Greystar in the Denver area reportedly include Solera Apartments in Lower Downtown, Luxe at Mile High, Highlands 32 at Highlands Square, and Overture and Everleigh, each in Central Park.

“In this case, we took action against Greystar for doing just that and have held them accountable for their conduct which jacked up rents,” Weiser said in the release. “Other landlords are on notice that cheating tenants won’t be tolerated in Colorado.”