The U.S. Federal Trade Commission is reportedly planning to sue Greystar Actual Property Companions, the largest apartment landlord within the U.S., for allegedly charging tenants thousands and thousands of {dollars} price of hidden obligatory charges.
The charges ranged from tens to tons of of {dollars} per 30 days per tenant, added on high of lease, in line with a Bloomberg report. They had been associated to companies like pest management, trash removing, and tenant background checks.
In accordance with Bloomberg, the FTC is predicted to allege that Greystar falsely marketed rental costs with out these charges, and solely instructed renters about them after they stuffed out an inquiry type, paid an software price, or, in some cases, paid a holding deposit. Greystar may face the lawsuit as quickly as this week.
“Greystar has labored laborious to steer the business towards improved price disclosures and has taken proactive steps over the past a number of years to advertise larger price transparency,” the corporate stated in an announcement to the Wall Street Journal. “The best path to reaching uniform and constant price disclosures throughout the business is thru clear regulatory pointers which don’t but exist within the rental house.”
If filed, this lawsuit would not be the primary federal motion in opposition to Greystar. Earlier this month, the U.S. Division of Justice expanded its August lawsuit in opposition to actual property software program firm RealPage to incorporate Greystar and 5 different main landlords.
The lawsuit alleges that the landlords shared confidential info with RealPage to align and artificially inflate rents for thousands and thousands of tenants.
Associated: The DOJ Expands Its Lawsuit Against AI Software Company RealPage to Include 6 Major Landlords
In accordance with the 115-page complaint, RealPage collected detailed details about lease costs and lease phrases from landlords who would in any other case be opponents. The software program firm then inputted the data into its AI-based algorithm, which churned out suggestions for the landlords about the best way to worth leases.
“We’re upset that the DOJ added us and different operators to their lawsuit in opposition to RealPage,” Greystar wrote in a statement final week. “Greystar has and can conduct its enterprise with the utmost integrity. At no time did Greystar interact in any anti-competitive practices.”
Greystar’s website states that it has over 700,000 rental items and $23.5 billion in fairness beneath administration within the U.S.
Associated: Is One Company to Blame for Soaring Rental Prices in the U.S.?
