Key Takeaways
- Greystar Real Estate Partners is facing multiple lawsuits, including federal actions by the FTC and DOJ, as well as class-action and employment discrimination claims, all centered on alleged deceptive practices and hidden fees.
- The FTC and State of Colorado lawsuit accuses Greystar of misleading renters by advertising rental prices without disclosing mandatory fees, potentially violating state and federal laws.
- The outcomes of these lawsuits could set important legal precedents for the rental property management industry, especially regarding fee disclosures and pricing transparency.
Overview of Greystar and Its Legal Challenges
Greystar Real Estate Partners is the largest multi-family rental property manager in the United States. The company manages hundreds of thousands of rental units across the country. In recent years, Greystar has come under intense legal scrutiny due to allegations of deceptive business practices, particularly related to the disclosure of rental fees and pricing.
The legal actions against Greystar are significant because they involve both federal and state authorities, as well as private plaintiffs. These lawsuits allege that Greystar has engaged in practices that mislead renters and violate consumer protection laws. The cases are ongoing, and their outcomes could have a major impact on the rental housing industry.
The FTC and State of Colorado Lawsuit
Allegations of Deceptive Fee Practices
On January 16, 2025, the Federal Trade Commission (FTC) and the State of Colorado filed a lawsuit against Greystar. The complaint alleges that Greystar advertised rental prices that did not include mandatory fees for services such as pest control and trash collection. According to the FTC, these fees were only disclosed to renters later in the leasing process, after they had already committed significant time and resources to securing a rental unit.
The FTC asserts that this practice violates both federal consumer protection laws and specific state laws, such as those in California, which require all mandatory fees to be included in the advertised rent price. The FTC's official press release provides further details on the case: FTC and State of Colorado Take Action Against Greystar.
Greystar’s Response
In response to the lawsuit, Greystar has publicly stated that it is committed to transparency and compliance with all applicable laws. The company denies any wrongdoing and has indicated that it will vigorously defend itself against the allegations. Greystar’s official statement can be found here: Greystar Responds to FTC Lawsuit.
Potential Impact
If the FTC and State of Colorado are successful, Greystar could be required to change its advertising and fee disclosure practices nationwide. The case could also result in significant financial penalties and set a precedent for how rental fees must be disclosed to consumers.
Additional Lawsuits Over 'Junk Fees'
Nature of the Claims
Beyond the FTC lawsuit, Greystar faces additional lawsuits alleging the imposition of illegal and excessive fees, often referred to as "junk fees." These lawsuits claim that Greystar charged tenants for services that should have been included in the advertised rent, particularly in states like California where such practices are prohibited.
The lawsuits allege that these hidden fees allowed Greystar to earn substantial extra profits at the expense of renters. More information on these lawsuits is available in this Reuters article.
Class-Action Litigation
A class-action lawsuit has been filed against Greystar, consolidating four separate cases. The class-action claims that Greystar unlawfully failed to disclose hidden fees to renters. The investigation is being conducted by Warren Terzian LLP, and more details can be found here: Greystar Class Action Investigation.
Legal Significance
These lawsuits highlight the growing legal focus on transparency in rental agreements. If successful, they could force Greystar and other property managers to change how they disclose fees and structure rental agreements.
DOJ Antitrust Lawsuit: Price-Fixing Allegations
Background
In addition to the fee-related lawsuits, the Department of Justice (DOJ) has filed an antitrust lawsuit against Greystar and several other large landlords. The DOJ alleges that these companies engaged in a price-fixing scheme by using common rental pricing algorithms to artificially inflate rent prices.
The DOJ claims that this conduct harms millions of renters by keeping rents higher than they would be in a competitive market. The DOJ’s official press release provides more information: Justice Department Sues Six Large Landlords.
Implications
If the DOJ prevails, Greystar and other landlords could face substantial penalties and be required to change their pricing practices. The case could also lead to increased regulation of algorithmic pricing in the rental market.
EEOC Lawsuit: Employment Discrimination
Pregnancy Discrimination Settlement
Separate from the rental fee and antitrust lawsuits, Greystar Management Services was sued by the Equal Employment Opportunity Commission (EEOC) for alleged pregnancy discrimination. The EEOC claimed that Greystar discriminated against an employee based on pregnancy, in violation of federal law.
To settle the lawsuit, Greystar agreed to pay $25,000 and implement significant remedial measures. The EEOC’s press release provides further details: Greystar Management Services Will Pay $25,000 to Settle EEOC Pregnancy Discrimination Lawsuit.
Broader Context
While this lawsuit is unrelated to the rental fee cases, it adds to the legal challenges facing Greystar and underscores the importance of compliance with employment laws.
Industry Implications and Future Outlook
Potential Precedents
The lawsuits against Greystar could have far-reaching effects on the rental property management industry. If courts rule against Greystar, other property managers may be required to revise their fee disclosure and pricing practices. This could lead to greater transparency for renters and potentially lower overall costs.
Ongoing Legal Developments
All of the major lawsuits discussed here are ongoing. The facts and legal arguments are still being developed, and the outcomes remain uncertain. Industry stakeholders, legal experts, and renters are closely watching these cases for guidance on future business practices and regulatory compliance.
Conclusion
Greystar’s legal challenges highlight significant concerns about transparency, fair practices, and compliance in the rental property management industry. The company faces lawsuits from federal agencies, state governments, and private plaintiffs, all alleging various forms of misconduct. The outcomes of these cases could reshape industry standards and have a lasting impact on how rental fees and pricing are disclosed to consumers.
For attorneys and legal professionals seeking in-depth research and updates on these cases, visit Counsel Stack.
Disclaimer:
This guide provides a general overview of the ongoing lawsuits involving Greystar Real Estate Partners. The information is based on publicly available sources and official statements as of June 2024. Many of these cases are active, and the facts or legal outcomes may change as litigation progresses. For specific legal advice or the most current information, consult a qualified attorney.
