Key Takeaways
- • Progress Residential, the largest U.S. manager of single-family rental homes, will pay $49.8 million to settle FTC and four-state allegations that it deceived renters with hidden fees, according to an FTC official who spoke to Reuters.
- • The FTC will receive $48.5 million to reimburse harmed consumers, and Arizona will receive $1.25 million; Colorado, Indiana, and Utah were also expected to join the settlement.
- • Progress is a subsidiary of Pretium, a real-estate-focused investment firm that owns and manages more than 82,000 rental homes across the U.S.
- • The action advances the FTC's broader push to require landlords to disclose mandatory fees upfront in advertised rental rates.
Summary
Progress Residential, the largest U.S. manager of single-family rental homes, will pay $49.8 million to settle allegations by the Federal Trade Commission and four states that it deceived renters with hidden fees, an FTC official told Reuters. The official said the company violated the law by imposing charges, such as smart home fees and fees for lack of renters' insurance, that were not included in advertised rental rates.
The FTC official also said Progress routinely failed to return renters' security deposits and advertised homes as "move-in ready" when they needed serious cleaning or repairs. The FTC will receive $48.5 million, which it will use to reimburse harmed consumers, and Arizona will receive $1.25 million. Colorado, Indiana, and Utah were also expected to join the settlement.
The settlement builds on the FTC's work on corporate cost-of-living issues, as the agency explores requiring landlords to list mandatory fees and charges upfront as part of advertised rental rates. Reuters noted that roughly 35% of Americans rent their homes and that, according to a Zillow survey, 60% of renters paid a recurring fee on top of rent last year.
Progress is a subsidiary of Pretium, a real-estate-focused investment firm that owns and manages more than 82,000 rental homes across the U.S. The company, founded by former Goldman Sachs executive Don Mullen, has said it aims to become one of the biggest homebuilding lenders by 2027.
The case follows a similar action against Invitation Homes, another single-family rental owner, which agreed to pay $48 million in 2024 to settle an FTC action over hidden fees.
The FTC official also said Progress routinely failed to return renters' security deposits and advertised homes as "move-in ready" when they needed serious cleaning or repairs. The FTC will receive $48.5 million, which it will use to reimburse harmed consumers, and Arizona will receive $1.25 million. Colorado, Indiana, and Utah were also expected to join the settlement.
The settlement builds on the FTC's work on corporate cost-of-living issues, as the agency explores requiring landlords to list mandatory fees and charges upfront as part of advertised rental rates. Reuters noted that roughly 35% of Americans rent their homes and that, according to a Zillow survey, 60% of renters paid a recurring fee on top of rent last year.
Progress is a subsidiary of Pretium, a real-estate-focused investment firm that owns and manages more than 82,000 rental homes across the U.S. The company, founded by former Goldman Sachs executive Don Mullen, has said it aims to become one of the biggest homebuilding lenders by 2027.
The case follows a similar action against Invitation Homes, another single-family rental owner, which agreed to pay $48 million in 2024 to settle an FTC action over hidden fees.
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