The Federal Trade Commission (FTC) has issued warning letters to 13 property management software providers across the United States. The agency cautioned that these companies may be breaking the law if they prevent rental property managers and owners from sharing accurate pricing information with consumers when marketing rental housing.
According to the FTC, limiting access to precise pricing details in rental listings could restrict consumers' ability to make informed decisions and reduce market efficiency. This action follows an announcement last week that Greystar, a major multi-family rental property manager, agreed to pay $23 million to the FTC and $1 million to Colorado for allegedly misleading consumers about rental prices.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated: “The FTC is committed to rooting out anticompetitive, unfair, and deceptive acts or practices in the rental housing market. Companies need to compete on price and consumers need accurate and non-deceptive information to make the best-informed decisions possible.”
The letters indicate that some property management software providers may be preventing managers and owners from fully disclosing all mandatory fees in advertised monthly rental prices. The FTC warns this practice could harm potential renters by withholding complete pricing information on websites and internet listing platforms.
Companies found engaging in such conduct could face legal actions, including federal court injunctions and civil penalties up to $53,088 per violation under current regulations. The FTC advises these firms to thoroughly review their business practices, website hosting platforms, and any software or coding that manages how information is presented on internet listing sites.
“We are monitoring the marketplace for potentially deceptive or unfair acts or practices relating to the marketing and advertising of rental housing and will take additional action as warranted,” the letters conclude.
The FTC continues its mission to promote competition while protecting and educating consumers. The agency reminds the public it will never request money, issue threats, instruct people to transfer funds, or promise prizes. More consumer resources are available at consumer.ftc.gov.
