The Federal Trade Commission is gearing up for a significant legal battle against Greystar Real Estate Partners, the nation's largest apartment landlord, according to an exclusive in The Wall Street Journal, which cited a person familiar with the matter as its source. Reportedly, the commission is preparing a civil lawsuit that alleges Greystar engaged in deceptive pricing practices and failed to properly disclose certain fees to prospective tenants when advertising rental units. These hidden charges are said to cover services such as pest control, trash collection, and tenant background checks.
While Greystar maintains it has been proactive in improving fee disclosures and promoting transparency, the company noted the lack of clear regulatory guidelines in the rental space. The potential lawsuit is part of a broader regulatory crackdown on big corporations under FTC Chair Lina Khan and President Biden's administration.
The FTC has been particularly focused on addressing hidden fees across various industries, including hotels, live event ticketing, and rental housing. In 2023, the commission proposed a rule banning hidden fees, which was finalized last month. However, the multifamily sector was notably absent from the final rule, a development that landlord trade groups initially viewed as a victory.
Recommended For You
Despite this apparent exemption, the FTC's potential lawsuit against Greystar signals that the rental housing industry remains under scrutiny. If the case proceeds, Greystar would become the first apartment landlord to face formal government allegations of hiding fees. This action aligns with President Biden's broader efforts to address housing affordability, including his call for a national rent-control measure.
The FTC's focus on Greystar is not isolated. The Justice Department recently expanded its price-fixing lawsuit against rental software firm RealPage to include Greystar and five other landlord companies as defendants. Additionally, the FTC settled a lawsuit with Invitation Homes in September over similar allegations of hidden fees and deceptive practices.
Greystar, which manages over 108,000 units nationwide, has already faced private class-action lawsuits from tenants in 2024 regarding hidden junk fees. In response, the company began including a "fee guide" at the bottom of apartment listings on its website to disclose charges beyond base rental payments.
As the Biden administration nears its end, this potential lawsuit represents one of the final opportunities for Khan to execute her ramped-up antitrust strategy. The future of such enforcement actions under the incoming Trump administration remains uncertain, with newly appointed Republican FTC Commissioner Andrew Ferguson set to take the helm of the agency.
While Ferguson has expressed intentions to remain aggressive on antitrust enforcement for big technology companies, his approach to the housing sector is less clear. The confirmation of antitrust attorney Mark Meador as a commissioner would create a Republican voting majority within the agency, potentially influencing future enforcement priorities in the rental housing industry.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
