Key Takeaways
- • Progress Residential, the largest single-family rental property manager in the U.S., will pay $49.75 million to settle FTC and four state charges of deceptive practices, according to an FTC press release.
- • The FTC alleges deceptive conduct since 2021, including hidden fees, improper security deposit deductions, misrepresented property readiness, and nondisparagement clauses barring negative reviews.
- • Under the proposed settlement, the company must advertise rents including all mandatory recurring fees, standardize its security deposit process, itemize deductions, and stop misrepresenting pre-move-in inspections.
- • Progress Residential, owned by private equity firm Pretium Partners and managing over 90,000 homes across 17 states, denies wrongdoing and says the agreement contains no admission of liability.
Summary
Progress Residential, the largest property manager of single-family rental homes in the United States, will pay $49.75 million to settle charges brought by the Federal Trade Commission and four states, according to a press release from the federal agency. The company, headquartered in Scottsdale, Arizona, manages more than 90,000 rental homes across 17 states. Its properties are owned primarily by its parent company, private equity firm Pretium Partners, through various investment funds.
The FTC accuses Progress Residential of a range of deceptive practices since 2021. These include charging hidden fees, such as "smart home" and "utility management" fees added after being omitted from advertised rents, and a "renter's insurance exemption fee" that tenants often discovered only after receiving their first monthly bill. The agency also alleges that the company deducted amounts from security deposits for normal wear and tear and preexisting conditions, and failed to send itemized statements within 30 days of move-out as promised. According to the complaint, internal guidelines directed employees and vendors to digitally remove dirt and defects from listing photos and insert missing appliances. Contracts also contained nondisparagement provisions that the FTC says purported to prohibit renters from leaving negative reviews.
Under the proposed settlement, Progress Residential must prominently advertise rental prices that include all mandatory recurring fees, standardize its security deposit process, provide itemized explanations of deductions, and stop misrepresenting whether homes have been inspected before tenants move in.
In comments provided by email, a company spokesperson said the agreement contains no admission of wrongdoing and that the company believes its practices "have been transparent, fair, and consistent with industry practice." The spokesperson added that, although the company disagrees with the FTC's claims, the resolution allows it to focus on its mission of expanding access to quality, affordable rental housing.
The FTC accuses Progress Residential of a range of deceptive practices since 2021. These include charging hidden fees, such as "smart home" and "utility management" fees added after being omitted from advertised rents, and a "renter's insurance exemption fee" that tenants often discovered only after receiving their first monthly bill. The agency also alleges that the company deducted amounts from security deposits for normal wear and tear and preexisting conditions, and failed to send itemized statements within 30 days of move-out as promised. According to the complaint, internal guidelines directed employees and vendors to digitally remove dirt and defects from listing photos and insert missing appliances. Contracts also contained nondisparagement provisions that the FTC says purported to prohibit renters from leaving negative reviews.
Under the proposed settlement, Progress Residential must prominently advertise rental prices that include all mandatory recurring fees, standardize its security deposit process, provide itemized explanations of deductions, and stop misrepresenting whether homes have been inspected before tenants move in.
In comments provided by email, a company spokesperson said the agreement contains no admission of wrongdoing and that the company believes its practices "have been transparent, fair, and consistent with industry practice." The spokesperson added that, although the company disagrees with the FTC's claims, the resolution allows it to focus on its mission of expanding access to quality, affordable rental housing.
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