Colorado Forces Greystar to Disclose Full Rental Prices NOW

UPDATE: Colorado has just reached a critical settlement with Greystar, one of the state’s largest landlords, mandating full disclosure of rental prices to prospective tenants. This groundbreaking agreement, announced on October 10, 2023, ends a nearly year-long lawsuit that accused Greystar of misleading renters by omitting additional fees in advertising.

Under the settlement, Greystar will pay $1 million to the state of Colorado for regulatory oversight and an additional $23 million to the Federal Trade Commission (FTC) for renter refunds, including for those in Colorado. This aggressive move aims to restore transparency in the housing market and protect consumers from hidden costs.

The settlement requires Greystar to explicitly list the total rental price in its advertisements, detailing any additional fees, their purposes, and whether they are optional or mandatory. Greystar has 90 days to comply with these new requirements, which will significantly impact how rental properties are marketed in Colorado.

“Addressing deceptive and hidden fees that trick consumers out of their hard-earned dollars is a top priority for our department,” stated Attorney General Phil Weiser. “This action holds Greystar accountable for its practices that inflated rents, sending a clear message that cheating tenants won’t be tolerated in Colorado.”

The lawsuit revealed that Greystar was misleading consumers by advertising low rent prices while adding mandatory fees during the rental process. Christopher Mufarrige, director of the FTC’s consumer protection bureau, emphasized the importance of this settlement, stating, “Greystar misled consumers by advertising low rent prices and then adding mandatory fees at the end of the sales process.”

The urgency for change is highlighted by a growing movement among Colorado lawmakers, who recently passed legislation aimed at increasing price transparency in rental agreements. This new law, effective January 1, 2024, prohibits landlords from charging certain fees, such as those for common-area maintenance, further protecting renters from unexpected costs.

The settlement comes shortly after another lawsuit settlement involving Greystar, which raised concerns regarding its use of a rent-setting algorithm that allegedly allowed landlords to illegally coordinate rent prices. As Greystar manages over 45,000 housing units across Colorado, the implications of these settlements are significant for tenants statewide.

In light of these developments, renters are encouraged to stay informed and vigilant about the costs associated with their housing. This landmark agreement sets a precedent that could reshape the rental landscape in Colorado and beyond, ensuring that tenants are no longer burdened by hidden fees.

Stay tuned for more updates on this evolving story as the implementation of these changes unfolds. Share this news to help raise awareness and support transparency in the rental market!