Progress Residential and its owner, Pretium Partners, agreed to pay $49.75 million to settle charges from the Federal Trade Commission and four states over deceptive rental pricing, the FTC said in a Nov. 6 announcement. The Progress Residential settlement is the largest enforcement matter against a landlord in the commission’s history.
Progress manages more than 90,000 homes in 17 states. Spread across those homes, the settlement comes to about $553 a home, a calculation from the two figures. The order’s main requirement is that the company advertise a rent that includes its mandatory fees, which tells you what the complaint says the old ads left out.
What the FTC and States Allege
The FTC, Arizona, Colorado, Indiana and Utah filed a complaint and a proposed stipulated order in federal court in the Northern District of Georgia. The complaint alleges that advertised rents left out mandatory monthly “smart home” and “utility management” fees, and that a “renter’s insurance exemption fee” was poorly disclosed. The commission says the hidden fees cost consumers tens of millions of dollars.
The complaint also alleges that Progress marketed homes as move-in ready and inspected when many had serious maintenance, repair or cleaning problems. It alleges the company withheld security deposits for normal wear and tear and did not send itemized statements within 30 days of move-out. It alleges that form contracts barred tenants from posting negative comments about the company. The conduct dates to at least 2021, according to the complaint. These are allegations, and the order is a proposed settlement.
How the $49.75 Million Settlement Splits
Of the total, $48.5 million goes to the FTC for consumer redress and $1.25 million goes to Arizona. The commission voted 2-0 to authorize the filing. The complaint says most of the conduct happened under prior management and that new management has moved to fix the problems. That is the company’s best point: a landlord that changed its practices before a settlement is in a different position from one that did not.
What the Proposed Order Requires
If the court approves the order, Progress must advertise the true total monthly rental price, including mandatory fees. It must give tenants itemized deposit statements within 30 days and stop deducting for normal wear and tear. It must also stop using standardized clauses that bar negative comments.
“Transparency regarding rental prices and fees helps consumers compare options and make informed choices,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, in the announcement. The order takes effect only after the federal judge in Georgia approves and signs it.
