Progress Residential and Pretium Partners to Pay $49.75 Million Over Deceptive Rental Pricing Charges
Property manager Progress Residential and its owner, private equity firm Pretium Partners, agreed to pay $49.75 million to settle government charges over deceptive rental pricing and billing practices. The Federal Trade Commission alongside four states (Arizona, Colorado, Indiana, and Utah) alleged the companies advertised false lower rents while adding hidden fees after tenants signed leases or moved in. Officials stated that Progress routinely withheld security deposits for normal wear and tear or existing property issues, failed to perform promised pre-move-in inspections, and forced tenants into contracts containing rules that banned negative reviews. Under the settlement filed in federal court, $48.5 million will go to the Federal Trade Commission for tenant refunds, while $1.25 million will go to Arizona. Progress must also advertise total monthly costs upfront, stop improper security deposit deductions, and drop restrictions on customer feedback.
What was announced
The Federal Trade Commission and four state attorneys general filed a lawsuit and proposed settlement against Progress Residential and Pretium Partners in the U.S. District Court for the Northern District of Georgia. Progress manages more than 90,000 single-family rental homes across 17 states.
Regulators alleged that the companies engaged in deceptive practices starting in at least 2021. According to the complaint, Progress advertised monthly rental prices that omitted mandatory fees, such as smart home charges, utility management fees, or unprovided insurance penalty fees. The agency also charged that Progress failed to inspect properties before move-in, wrongfully kept security deposits for pre-existing damage or building improvements, and ignored customer complaints. Furthermore, Progress required tenants to sign nondisparagement provisions, which are contract clauses that prohibit consumers from publishing negative reviews or statements about a company.
The proposed stipulated order requires the companies to pay $49.75 million. The Commission approved the filing by a 2-0 vote.
What it means
This enforcement action is the largest case against a landlord in the history of the Federal Trade Commission. It forces Progress to change how it advertises rental prices and handles tenant money.
Going forward, Progress must clearly display the true total monthly rental price, including all mandatory recurring fees, whenever it advertises a home. The company cannot claim homes are inspected unless they actually pass an inspection. Progress must also create uniform standards for security deposit withholdings, provide itemized deduction statements within 30 days of move-out, and eliminate nondisparagement rules from consumer contracts.
For renters, $48.5 million of the settlement fund will be managed by the Federal Trade Commission to compensate affected customers. Arizona will receive the remaining $1.25 million.
What the announcement does not tell us
The announcement does not state how or when affected renters will be able to apply for refund payments. It also does not specify how many individual tenants paid hidden fees or lost security deposits between 2021 and the settlement date.
While the complaint notes that the majority of the illegal conduct happened under prior management, the text does not identify the specific executives involved. Finally, the announcement does not explain how the Federal Trade Commission or state officials will monitor Progress to ensure ongoing compliance with the new pricing rules.
How this was written
This analysis was written with AI from the official announcement below, using only facts that announcement states. The quoted wording is US FTC Press Releases’s own. Always check the original before acting on anything here.
Proposed order requires companies to advertise true rental prices, clearly and conspicuously disclose fees and stop improperly withholding security deposits The nation’s largest property manager of single-family rental homes, Progress Residential, and its owner, private equity firm Pretium Partners, will pay $49.75 million to settle charges brought by the Federal Trade Commission and four states that the companies misled consumers with deceptive rental pricing practices. View Press Release
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