US rental giant that billed tenant a ‘cleaning fee’ after she moved now being sued for $100M+ in ‘hidden fees’

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US rental giant that billed tenant a ‘cleaning fee’ after she moved now being sued for $100M+ in ‘hidden fees’

US rental giant that billed tenant a ‘cleaning fee’ after she moved now being sued for $100M+ in ‘hidden fees’

When Mallory Rutkoske moved out of her apartment in Salt Lake City, she didn’t expect a cleaning bill.

Nothing in her lease said she was responsible for such a charge, so she was surprised and angry when the property management company forwarded her the invoice.

“I’m just not going to pay for something I don’t owe,” Rotkoske told

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Fox 13 Utah. “These are predatory fees.”

To make her point, she took Greystar — country’s largest manager of multi-family rental properties — to small claims court to dispute the charge. And won.

Now Greystar has a ******* court case on its hands.

The Federal Trade Commission (FTC) and the state of Colorado are jointly suing the company, alleging that from 2019 and 2022 alone, Greystar raked in more than $100 million in improper fees from its tenants in numerous states, including Utah, Colorado, Nebraska, California.

The FTC and Colorado want victims compensated for losses and for the court to ban bad practices around hidden rental fees and extra costs.

In response, Greystar issued a statement saying they are following longstanding industry practices and that no tenant pays a fee that they didn’t sign off on in their lease.

The FTC doesn’t accept this argument. It believes Greystar wrongfully hid extra fees from tenants because the charges weren’t advertised in rental listings. Tenants wouldn’t be aware of the extra costs until they sat down to read the fine print in the lease — and not everyone does.

The lawsuit cites the case of one would-be Utah tenant who applied for a Greystar unit online and only learned about an extra $112 in monthly fees after clicking through multiple links. The FTC said there were many such cases and numerous cases in which Greystar tenants ended up being charged hundreds of extra dollars on top of rent, including at least seven in Utah.

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Tara Rollins, executive director of the Utah Housing Coalition, is following the FTC and Colorado suits closely. She’s pushing her state legislature to require that all rental fees be included upfront in the rental price.

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Greystar is swept up in a larger debate around ‘junk fees’ — extra unexpected charges tenants are hit with above and beyond rent. In 2023, the Biden-Harris administration launched a national initiative to address junk fees and improve

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around these extra costs.

That same year, the National Consumer Law Center released a

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on the scope of the problem. It turned out that a majority of tenants surveyed were charged extra costs on top of rent, including:

rental application fees (89% of respondents)

excessive late fees (87% of respondents)

utility-related fees (73% of respondents)

processing or administrative fees (68% of respondents)

convenience fees (60% of respondents)

insurance fees (59% of respondents)

charge notice fees (56% of respondents)

While the outcome of the lawsuit is uncertain, the best thing for tenants to do is read their lease carefully before signing, and get legal advice if needed. If there are clauses about extra fees, you may be able to negotiate before you sign. If you’re charged for something that’s not in the contract, you can follow Rutkoske’s example and dispute the charge.

Finally, it’s a good idea to search for reviews about property management companies to learn about their business practices, particularly around extra costs, before applying to move into one of their buildings. That could save you money and hassle down the road.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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#rental #giant #billed #tenant #cleaning #fee #moved #sued #100M #hidden #fees

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