Landlord overcharged renters hundreds of millions in junk fees for years, alleges FTC lawsuit

Greystar claims the FTC is misrepresenting the situation and that advertising a base rent amount is “a longstanding industrywide practice.” The company manages more than 800,000 rental units across the United States, including apartments, student housing, and senior communities, according to the lawsuit. 

Junk fees are a serious threat to your wallet, leading the Biden administration and the FTC to “declare war” on them. Renters are a big victim of undisclosed fees, and it’s worth understanding the steps you can take to protect yourself from hidden junk fees if you rent your home. 

Let’s break down what experts have to say about types of fees to look out for and how you can be a smart consumer in a challenging housing market. 

Junk fees renters need to watch out for

Questionable and hidden fees are everywhere. From concert ticket “convenience fees” to hotel “resort fees,” American consumers are besieged by a growing roster of fees that charge them money for no visible benefit. Rental agreements administered by large companies are notorious for junk fees.

“Unfortunately they are quite common,” says Stacy Brown, director of technical training at Real Property Management and a veteran of the real estate industry. “While reputable companies disclose and can explain their fees, there are still those out there who inflate the rent and collect fees simply because they can or always have.” 

The experts we spoke to offered a long list of fees that may be tacked on to what you owe each month beyond the base rent. While some may not exactly qualify as “hidden” or “junk” in every case, they certainly merit extra scrutiny. They include:

• Animal DNA fees—for identification of dog park offenders
• “Convenience” fees
• Garbage pickup
• Guest fees
• Internet fees
• Laundry facilities
• Mail/package fees
• Parking fees
• Pet fees
• Renters insurance verification fees
• Valet or porter service fees

Even when you know what to watch out for, junk fees can be hard to avoid entirely. Consider this example from Cathy Mansfield, a law professor at Case Western Reserve University, who previously served as a policy analyst with the Consumer Financial Protection Bureau (CFPB).

“My kids are paying for regular and concierge garbage pickup—despite not needing both,” says Mansfield.

How much could junk or hidden fees tack onto your rent? One tenant quoted in the FTC lawsuit against Greystar cited a payment of about $1,400 not including utilities, despite having been quoted $1,000 per month.  

The current rental market is less and less affordable

There has been some good news for the average renter. Rents dipped in December 2024, with new construction outpacing demand, according to a Realtor.com report. The report noted December marked the 17th consecutive month of falling rents. 

However, “falling” doesn’t equal “affordable,” particularly to consumers still feeling the sting of how much inflation seemed to ratchet up the price of basically everything during and after the coronavirus pandemic. The national median asking rent fell to $1,695 in December, which the Realtor.com report notes is the first time it’s been below $1,700 since April 2022.

As one example of a difficult market, consider how John Walkup, co-founder of real estate data analytics company UrbanDigs, describes things in the Big Apple.

“In New York City, it’s a tight rental market, with more demand than supply, which makes avoiding junk fees even trickier for renters,” says Walkup.

The importance of trying to comparison shop and find housing you can afford should be clear. But the FTC lawsuit against Greystar alleges that the company’s practices made it difficult for consumers to accurately discover the true rent they ended up owing.

“Through their actions, Greystar is thwarting apartment hunters from comparison shopping and choosing a home that fits within their budget,” Colorado Attorney General Phil Weiser said in a news release.

Asked how prospective renters can protect themselves from getting saddled with junk fees, Walkup of UrbanDigs advised trusting your intuition and being willing to walk away.

“Ask questions—especially if any proposed fees seem unclear—to get solid answers, and don’t be afraid to walk away if your gut feels like something is wrong,” he says.

Steps to take if you’re overcharged after moving in

Mansfield of Case Western Reserve University offers the following advice if you move in to a rental and then realize you’re being charged more than was advertised upfront:

• Start by reading the lease thoroughly. 
• Send a letter to the landlord detailing the overcharges. Keep a copy for yourself, and if possible, deliver it in a way that lets you prove it was delivered—such as return receipt mail. In the letter, give a reasonable deadline, and note that if you do not hear back from them by that time you will explore your legal options.
• Check local landlord tenant laws to see what rights you have as a tenant. 
• If you live in a complex with many renters, check with your neighbors if they’re being overcharged as well. You may be able to connect with a consumer protection lawyer as a group. 

She notes that many states provide free information about tenant rights. And, if your landlord or property management company won’t work with you toward a fair resolution, Mansfield adds that the internet and news media may be effective tools.

“Don’t forget the power of social media,” she says. “Landlords don’t like to be trashed on social media. So if you can’t get a fair solution, consider leaving a Google review or contacting a local television station.”