T
he Federal Trade Commission is preparing a lawsuit against Greystar Real Estate Partners, the country's largest apartment landlord, over alleged hidden fees imposed on tenants. The civil lawsuit would claim that Greystar engaged in deceptive pricing practices and failed to properly disclose fees to prospective renters. The alleged hidden charges include pest control, trash services, and tenant background checks.

    Greystar has taken steps towards greater transparency regarding fees, but a representative pointed out the need for clear regulatory guidelines in the rental space. The FTC recently finalized a rule requiring upfront disclosure of total price including fees, but this rule applies to hotel and live-event ticketing sectors, not multifamily rentals.

    This would be the first time a multifamily landlord faces a formal case from the government over hidden fees. However, it's possible that the incoming administration could drop the case. The FTC has previously targeted single-family rental landlords, including Invitation Homes, which agreed to pay $48 million to settle a case regarding hidden costs.