Largest US Single-Family Landlord Settles FTC Lawsuit Over Alleged Deceptive Pricing

Authored by Naveen Athrappully via The Epoch Times,The largest single-family rental property manager in the United States has agreed to pay $49.75 million to settle alleged charges that it deceived customers about rental prices.Progress Residential and owner Pretium Partners to pay $49.75 million to settle FTC and states' charges over deceptive rental pricing practices and other unlawful conduct: https://t.co/cabuHSIbXa /1— FTC (@FTC) November 6, 2026Headquartered in Scottsdale, Arizona, Progress Residential has "routinely charged consumers hidden monthly fees after misleading them with false rental prices," according to a Nov. 6 lawsuit filed by the Federal Trade Commission (FTC) and the states of Arizona, Colorado, Indiana, and Utah.The complaint said the company also allegedly charged a host of other deceptive and unlawful one-time and situational fees throughout its leases.The complaint alleged that Progress delivered homes without repairing or inspecting them before customers moved in, made illegitimate charges on customers' security deposits, and dodged customer service requests about billing errors and maintenance issues.The lawsuit also alleged that Progress includes illegal contract terms that prohibit customers from leaving negative reviews of the company. The complaint was filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division.Progress, owned by private equity company Pretium Partners, manages more than 90,000 homes across 17 states.The complaint alleged that since 2021, Progress's hidden fees often go undiscovered by customers until after they sign a lease or move in. Customers have paid tens of millions of dollars in these hidden fees, the FTC said in a Nov. 6 statement.Some hidden fees include monthly smart home fees and utility management charges, neither of which the FTC alleged is included in the advertised rental price.The company also allegedly charges a fee for customers who do not provide proof of renters' insurance. Many customers learn about this fee only when they receive their first monthly bill.Regarding the security deposit, Progress promises to only deduct amounts if customer damages go beyond normal wear and tear. However, Progress has allegedly withheld security deposits for normal wear and tear, renovations, and repairs, even though rental companies typically cover these expenses, FTC said."Consumers searching for housing should have access to straightforward information about the costs associated with renting a home," Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, said in the statement.Under the proposed settlement, Progress and Pretium agreed to pay $48.5 million to the FTC and $1.25 million to Arizona. The FTC will use the funds to provide redress to people harmed by the companies' alleged practices.Progress will be required to advertise the true total monthly rental price of properties, including all mandatory recurring charges. The company is banned from charging customers' security deposits for damages that are part of the normal wear and tear of properties.Progress stated it has made several changes to ensure accountability and transparency, including redesigning fee disclosure practices so customers understand the real cost of renting before committing.In a statement as part of the FTC settlement, the company said the agreement "contains no admission of wrongdoing, and we maintain Progress' practices have been transparent, fair, and consistent with industry practice.""Although we disagree with the FTC's claims, this resolution allows us to move forward with our mission of expanding access to quality, affordable rental housing in neighborhoods of opportunity," the company stated.Pretium also dismissed any wrongdoing.The FTC sought public comments in March regarding a proposed rule to address deceptive or unfair fee practices in the rental housing industry.FTC sought comments regarding fees and charges disclosed by housing providers, security deposits, application fees, and billing issues."The failure to advertise the true total rent limits consumers' ability to make informed financial decisions, increasing their search costs and exposing them to other negative monetary consequences when they take on more rent than they can afford," the FTC said in the March 12 statement.