Utah joins FTC in $48.5 million rental-fee settlement with landlord Progress Residential

What the settlement does

Single-family landlord Progress Residential and its private equity owner would pay $48.5 million over rental fees and deposits under a proposed settlement with Utah, the FTC and three states. ^[1]

The Utah Department of Commerce announced the proposed deal with Progress and owner Pretium Partners on Nov. 9. ^[1]

The Utah Division of Consumer Protection, represented by the Utah Attorney General's Office, joined the FTC and the attorneys general of Arizona, Colorado and Indiana in filing a complaint and a proposed stipulated order against the companies. Progress manages more than 90,000 single-family rental homes in 17 states, according to the department. ^[1]

The FTC may use the $48.5 million to refund affected renters. The companies also agreed to pay Arizona $1.25 million in attorneys' fees and costs. The order takes effect when a court enters it. ^[1]

What the states allege

The complaint alleges that advertised monthly rents left out mandatory fees for smart home devices, air filters, landscaping, pest control and other items, adding $30 to $330 or more to each month's bill. It also alleges the companies collected nonrefundable application fees of up to $55 per adult and holding fees of up to $500 before revealing the full monthly cost. ^[1]

The states further allege that listing photos were digitally altered to hide dirt and add appliances to homes that were not move-in ready, that security deposits were docked for normal wear and tear and for damage that existed before residents moved in, and that lease terms barred residents from posting negative reviews. ^[1][2]

"Housing affordability is one of the greatest challenges facing consumers today, and Progress Residential exploited this vulnerability by misleading renters and concealing additional fees," Utah Department of Commerce Commissioner Margaret Woolley Busse said in the release. ^[1]

What the companies must change

Under the proposed order, Progress and Pretium must show the total monthly rent, including all mandatory fees, more prominently than any other price. They must stop charging residents for normal wear and tear, pre-existing conditions or upgrades, and send an itemized statement of any deposit deductions within 30 days of move-out. ^[1]

The companies must also keep inspection photos and records and give them to residents on request, stop using or enforcing lease terms that restrict reviews, and stop charging late fees or pursuing eviction when the company's own payment portal fails. ^[1]

The companies’ response

Progress and Pretium neither admit nor deny the allegations, according to the department. ^[1] A Progress spokesperson told Gizmodo the company believes its practices "have been transparent, fair, and consistent with industry practice," and said that although the company disagrees with the FTC's claims, the resolution allows it to move forward. ^[2]

Utahns with consumer complaints can file them with the Division of Consumer Protection at dcp.utah.gov. ^[1]