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If you’re in the property management business, you know an important part of the job is reviewing and checking for compliance with regulations covering everything from the terms of your rental agreements to unit habitability. And for good reason. For most people, housing is their largest expense. Today’s action against Greystar is an important reminder to include consumer protection laws on your compliance checklist. Here’s what to know.

The FTC and state of Colorado have filed a complaint against Greystar, the biggest multi-family rental property manager in the USA. The complaint alleges Greystar routinely advertises deceptively low rents to lure in renters. Greystar has waited until prospective tenants provided personal information or paid nonrefundable fees before revealing that tenants are responsible for paying mandatory fees on top of the advertised rental price. These fees inflate monthly leasing costs significantly, sometimes by more than 10% over advertised rates. The complaint, which is pending in the District of Colorado, claims Greystar’s deceptive advertisements have cost renters hundreds of millions of dollars in nonrefundable fees and higher-than-advertised leasing costs.

If property management is your business, make sure to follow the case, and consider this advice:

• Tell the truth in your advertising. Whether it’s the bottom line on rent or the condition of the unit, what you promise people in your ads has to match what they’ll actually get. It’s FTC law 101. Deceptive advertising may lead to a short-term bump in application fees, but it’s illegal, and not a long-term business plan.
• Include mandatory fees in advertised rental prices. People need to know how much their leasing costs will be before they sign a lease. It doesn’t serve you, the property owner, your tenants, or honest competitors to try to lock people into units they can’t afford.
• Review all applicable laws and regulations. Make sure you understand all federal and state laws that apply to your business, including consumer protection laws. In this case, the complaint says Greystar violated the FTC Act, the Gramm-Leach-Bliley Act, and the Colorado Consumer Protection Act. Depending on what happens in court, Greystar could face a significant monetary judgment. Take this opportunity to do a comprehensive review.
• The FTC’s bipartisan Unfair or Deceptive Fees Rule is coming. If you manage properties offering short-term lodging, such as a vacation rental, you may be covered by the FTC’s Unfair or Deceptive Fees Rule prohibiting hidden or misleading fees. The rule will be in full effect 120 days after it’s published in the Â鶹´«Ã½ Register, and the FTC may seek civil penalties for violations.