Colorado’s Attorney General and federal regulators are suing Greystar for misleading tenants about rental costs and hidden fees
Denver: So, here’s the scoop. Colorado’s Attorney General, Phil Weiser, and some federal regulators have teamed up to take on Greystar, the biggest apartment owner in the U.S. They filed a lawsuit claiming Greystar has been misleading tenants about rental costs.
The lawsuit, which landed in U.S. District Court in Denver, says Greystar has been hiding mandatory fees for things like trash collection and pest control. This means the actual rent is way higher than what they advertise online. They’re accused of breaking both state and federal laws with these practices.
One big issue is that potential renters don’t find out the full rental cost until after they’ve already paid an application fee. That’s a real kicker!
Greystar manages over 45,000 units in Colorado alone and has raked in more than $100 million from these hidden fees across several states. Weiser pointed out that because of Greystar’s sneaky advertising, tenants end up paying way more than they expected.
Greystar, on the other hand, claims they’ve tried to work things out with the FTC. They argue that the lawsuit is just a way to grab headlines as the Biden administration winds down. They say the way they advertise rent is standard in the industry and that no one pays fees they haven’t agreed to in their lease.
However, the lawsuit highlights that while fees are in the lease agreements, they’re often buried in long contracts, making it hard for tenants to see the total costs upfront.
Recently, a guy named Franklin Ramirez moved to Denver from Chicago and is feeling the pinch of those extra fees in his new apartment. He’s not alone; about 50 renters in the area have shared their frustrations about the numerous fees that add up to hundreds of dollars each month.
This lawsuit comes at a time when Colorado lawmakers and consumer advocates are pushing for better rules around hidden fees, especially in housing. There’s even a bill in the works to tackle this issue next week.
Looks like the FTC is on board too. They recently wrote to Colorado officials, suggesting that a comprehensive law could help ease the financial burden on renters, especially those with lower incomes.
