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Hidden Rental Fees and the 2025 Rental Housing Settlement

In December 2025, the largest apartment management company in the US agreed to pay $24 million over undisclosed fees. The most significant federal consumer action on rental housing fees to date.

The short version

In December 2025, Greystar, the largest apartment management company in the United States, agreed to pay $24 million to settle a federal lawsuit brought by the FTC and the State of Colorado. The complaint alleged that Greystar misled renters by omitting mandatory fees from advertised monthly rents.

This is the most significant federal consumer protection action on hidden rental housing fees to date, and it signals that the FTC intends to pursue additional rulemaking around rental housing pricing transparency.

This guide explains what the case was about, what the settlement requires, and what it means for renters going forward.

What the case was about

Greystar manages hundreds of thousands of apartment units across the United States. The FTC and Colorado Attorney General alleged that:

1. Greystar advertised rental rates that did not include mandatory monthly fees
2. These mandatory fees included charges for pest control, valet trash, package concierge, and utility administration
3. Consumers who relied on the advertised rate were charged significantly more after signing leases
4. Greystar's marketing practices misled consumers about the true cost of renting

The complaint was filed in January 2025 under then-FTC Chair Lina Khan, who made junk fees a priority during her tenure. The case proceeded under FTC jurisdiction and Colorado state consumer protection law.

Settlement terms

Total payment: $24 million

Scope of relief:

• Monetary relief to affected renters
• Injunctive relief requiring changes to Greystar's marketing and disclosure practices
• Ongoing compliance monitoring

Specific practice changes:

• Greystar must include mandatory fees in advertised rental prices going forward
• Material disclosures must be made clearly and conspicuously
• The company cannot misrepresent the nature or purpose of fees

Distribution to consumers: Specific claim process and eligibility criteria were set by settlement administrator. Renters covered by the settlement received notice.

Why this settlement matters beyond one landlord

Several features make this case influential:

It targets rental housing specifically. The FTC Junk Fees Rule (16 CFR Part 464) covers only short-term lodging and live-event ticketing. The Greystar action extended federal consumer protection enforcement to long-term residential rental, a category not explicitly covered by the rule but covered by the FTC's broader authority under Section 5 of the FTC Act.

It signaled future rulemaking. In announcing the settlement, FTC leadership indicated they would consider rulemaking specifically for rental housing. This suggests additional federal action on rental fees is likely.

It established the "mandatory" question. The case turned on whether fees labeled as "mandatory" for all tenants (pest control, valet trash, etc.) should be part of the advertised rent. The answer, yes, has implications for any housing provider doing similar bundling.

It involved state-federal coordination. The joint action with Colorado demonstrated that state AGs and the FTC can effectively combine authority. Other state AGs are likely to bring similar actions under their own laws.

Types of rental fees under scrutiny

Following the Greystar case, certain categories of rental fees have been identified as potentially disputable:

Mandatory "amenity" fees: charges that apply to all tenants regardless of use. Examples:

• Pest control fees
• Valet trash fees
• Package concierge fees
• Utility administration fees
• Common area utility fees (sometimes separately itemized beyond base rent)

Application fees: while not directly covered by the Greystar case, application fees have faced scrutiny in multiple states for being charged multiple times to applicants for the same unit.

Move-in fees / "administrative" fees: one-time charges at lease signing. Disclosure requirements vary.

Late fees: typically contractual but subject to "reasonableness" standards in many states.

Non-refundable deposits: distinct from security deposits. Whether they're legal varies significantly by state.

If you rent from a large management company

For current Greystar tenants:

• Review your lease for the specific fees that apply
• Check whether your current advertised rental rate at signing included all mandatory fees
• If you signed a lease after the settlement's implementation date, Greystar should now be including mandatory fees in advertised rent
• Settlement recovery may be available if you leased during the class period. Check with settlement administrator.

For tenants of other large management companies:

• Landlords watching the Greystar settlement may be adjusting their own practices
• If your advertised rent did not include mandatory fees, document and consider complaint options
• Some states (California, Massachusetts) have state laws that may provide additional recourse

State laws affecting rental fees

Beyond federal action, several states have specific rental fee laws:

• California: tenant protection laws include disclosure requirements for mandatory fees
• Oregon: strict rent stabilization includes rules on fee structures
• Massachusetts: recent consumer protection regulations apply to residential rentals
• Colorado: partnered with FTC on Greystar; has additional state rental protections
• New York: rent-regulated housing has strict rules on fees; other rentals have narrower protection
• Washington: limits on specific fees and deposits

If you're renting in one of these states, check your state's landlord-tenant laws for specific fee protections.

What to look for when signing a lease

Things to document before signing:

The advertised rent. Screenshot or save the listing price that attracted you to the property.

All mandatory fees. Ask the leasing agent for a complete list of every monthly charge, including utilities (if not included), amenity fees, parking, and any category-specific fees.

One-time fees. Application fees, administrative fees, move-in fees.

Security deposit vs. non-refundable deposit. These are different things in most states.

Utility arrangement. Who pays what, what's billed directly by utility vs. through landlord, whether any pass-throughs have administrative markups.

Pet fees. If applicable. Structure (monthly vs. one-time) and amount.

Late fees. When they apply and what they cost.

Having everything documented at signing helps if disputes arise later.

If you believe you've been charged undisclosed fees

Document:

• The advertised rent
• Your actual charges, with specific fee breakdowns
• Any marketing materials promising the lower rate

Try resolution first:

• Contact the property management company with the discrepancy
• Ask for either a refund of the discrepancy or a rate adjustment

Escalate if needed:

• State attorney general complaint (especially in CA, NY, MA, CO)
• FTC complaint at reportfraud.ftc.gov
• State consumer protection office
• Tenant rights organization (many states have free legal aid for tenants)
• Private attorney if the amounts are significant

Be aware of retaliation protections. Most states have laws protecting tenants from landlord retaliation for asserting legal rights. Retaliation (raised rent, eviction threats, harassment) following a legitimate complaint is typically illegal.

Common questions

A note on scope

This is consumer information based on publicly available court filings, settlement documentation, and FTC announcements. It is not legal advice. Landlord-tenant law varies significantly by state and situation. For specific disputes, consult a tenant rights attorney or legal aid organization in your state.