Progress Residential, one of the nation’s largest managers of single-family rental homes, has agreed to change how it advertises rents, charges fees and handles security deposits, and to pay about $49.8 million to settle claims by the Federal Trade Commission and four states. The company denies wrongdoing.
The stipulated order provides for $48.5 million in consumer relief for renters nationwide and $1.25 million in Arizona attorney’s fees and costs. Indiana’s attorney general announced the settlement, reached with the FTC, the attorneys general of Arizona, Colorado and Indiana, and Utah’s Division of Consumer Protection.
What regulators alleged
In the federal complaint for the Northern District of Georgia, regulators alleged that the company advertised rental prices that did not reflect the full amount tenants had to pay, imposed hidden or inadequately disclosed fees, and mishandled security deposits. They also alleged that it misrepresented the condition and move-in readiness of homes, restricted tenants’ ability to share reviews, and failed to address tenant complaints and maintenance issues.
Progress Residential and its owner, Pretium Partners, said in a statement that the agreement resolves the FTC’s civil investigative demand about “certain aspects of our resident experience during the period of 2021 to 2025.” The statement said: “The agreement contains no admission of wrongdoing, and we maintain Progress’ practices have been transparent, fair, and consistent with industry practice.”
What the company must change
Under the settlement terms, Progress must show the total monthly rent, along with mandatory fees and charges, in ads and listings before a person commits to renting. It must stop withholding security deposits for ordinary wear and tear, and stop making misleading claims about the condition of its homes. Indiana’s attorney general said the terms also require itemized explanations of security deposit deductions.
Indiana Attorney General Todd Rokita said: “No company, regardless of size or financial backing, gets a free pass to mislead consumers, impose hidden charges or treat tenants unfairly.”
JBizNews Desk | Washington, D.C.
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