FTC ramps up scrutiny of rental pricing practices

The Federal Trade Commission (FTC) has intensified its enforcement and policy focus on rental pricing transparency and fees in the housing market. In rapid succession, the Commission announced a $24 million settlement with Greystar,[1] issued warning letters to 13 property management software providers regarding pricing transparency,[2] highlighted broader industry-wide concerns, and signaled a potential rulemaking on unfair or deceptive rental fees.[3]

These developments build on the FTC’s 2024 action against a large single-family home landlord, underscoring that rental housing participants – owners, operators, software providers, and investors – face heightened legal and reputational risk if pricing practices obscure the true cost of renting.[4]

In this alert, we provide a brief summary of these developments and outline their implications for industry participants.

The Greystar settlement: Alleged deceptive pricing and potential new rulemaking

The FTC, together with the state of Colorado, alleged that Greystar misrepresented the true cost of renting by advertising deceptively low base rents while excluding mandatory fixed monthly fees, violating the FTC Act, the Gramm-Leach-Bliley Act (GLBA), and the Colorado Consumer Protection Act. To resolve the allegations, Greystar agreed to pay $23 million to the FTC and $1 million to the state of Colorado. The order also mandates robust disclosures, such as by requiring Greystar to prominently display the total monthly leasing price and mandatory fees when advertising. In addition, before accepting any payment, Greystar must clearly and conspicuously disclose all fees, including the amount, purpose, and whether it is mandatory.[5]

In a concurring statement, FTC Chairman Andrew N. Ferguson announced he directed staff to begin proposing a new rule to address unfair or deceptive fees in rental housing, citing concerns that misleading pricing is not limited to a single firm. This signals potential prospective, industry-wide standards around total price disclosures and fee practices.[6] Despite an overall federal deregulatory agenda, the Commission may promulgate rules when enforcement is not enough to solve a market problem and the matter involves a policy priority.

Warning letters to 13 property management software providers

Days after the Greystar settlement, the FTC sent warning letters to 13 property management software providers, cautioning that impeding the display or transmission of accurate total rental pricing – particularly where software omits mandatory fees from advertised prices on owner/manager websites or third-party listing platforms – may violate the law. The letters warn companies that hindering transparent pricing may draw legal action, injunctions, and civil penalties up to $53,088 per violation. The letters urge providers to conduct comprehensive compliance reviews of hosting platforms, code, and data flows to listing sites.[7]

The FTC highlighted that software design choices can harm consumers and competition by preventing meaningful comparison when companies prevent accurate display of complete pricing or restrict the ability of property owners and managers to disclose total monthly prices and fees. The letter cites recent enforcement against Greystar and another large single-family home landlord while reiterating the Commission’s continued marketplace monitoring for potential deceptive or unfair practices in rental advertising.[8]

Broader areas of scrutiny: Pricing transparency, fees, and data practices

These actions reflect a growing FTC focus on renters’ ability to understand the total rental prices they are paying. Specific concerns include advertising partial prices that omit mandatory, recurring fees; drip pricing revealed only at lease execution and after paying certain fees such as a non-refundable application fee; inadequate clarity on whether fees are mandatory or optional; and practices that result in obtaining financial information through misrepresentations. The Commission has also warned that platform design and information flows impairing accurate pricing disclosures deprive consumers of informed choice and undermine market efficiency.[9]

These latest actions build on the FTC’s 2024 enforcement against the largest single-family home landlord. There, the FTC alleged deceptive pricing and undisclosed “junk fees,” misrepresentations about inspections and “24/7 emergency maintenance,” unfair withholding of security deposits, and improper eviction practices.[10] The FTC’s settlement with the landlord required it to pay $48 million; mandated clear and conspicuous disclosure of total monthly leasing prices; prohibited improper deposit withholdings and unfair eviction practices; and imposed robust compliance, recordkeeping, and data-handling obligations, including destruction of certain financial data.[11]

Implications for owners, managers, software providers, and investors

Given the FTC’s recent moves, owners and managers are encouraged to review advertising and leasing workflows to confirm that all mandatory recurring fees are prominently included in the total monthly price and that fee disclosures are clear before accepting any payment. Software providers are encouraged to evaluate platform functionality and data integrations to avoid inhibiting complete pricing disclosures across all channels. Private equity investors in housing should carefully review pricing, fees, and data practices in portfolios and pipeline assets while anticipating continued enforcement and potential rulemaking governing rental fees and pricing transparency.[12]

For more information, please contact the authors.

 

_{[1] Greystar Agrees to Pay $24 Million & Stop Deceptive Advertising Practices as a Result of FTC and Colorado Lawsuit Alleging the Firm Deceived Consumers about Rent Prices (Dec. 2, 2025) (Greystar Settlement).}

_{[2] FTC Sends Warning Letters to 13 Property Management Software Providers Nationwide (Dec. 9, 2025) (Warning Letters).}

_{[3] Concurring Statement of Chairman Andrew N. Ferguson, FTC v. Greystar Real Estate Partners (Dec. 2, 2025) (Ferguson Statement).}

_{[4] FTC Takes Action Against Large Single-Family Landlord for Deceiving Renters, Charging Junk Fees, Withholding Security Deposits, & Employing Unfair Eviction Practices (Sept. 24, 2024) (2024 Action).}

_{[5] Greystar Settlement.}

_{[6] Ferguson Statement.}

_{[7] Warning Letters.}

_{[8] FTC’s Warning Letter Template for Property Management Software Providers (Dec. 8, 2025).}

_{[9] Warning Letters.}

_{[10] 2024 Action.}

_{[11] 2024 Settlement.}

_{[12] Ferguson Statement; Warning Letters.}