Apartment giant Greystar hit with new 'junk fee' lawsuits following FTC action

Apartment management giant Greystar now faces a wave of U.S. consumer lawsuits following a Federal Trade Commission lawsuit earlier this year accusing the company of misleading tenants with concealed “junk” fees.

On Tuesday in federal court in San Diego, a new proposed class action was filed against Greystar, alleging that the company conceals the true cost of its rental units.

“Put simply, Greystar’s tactics make it impossible to actually rent from Greystar for the advertised prices,” the lawsuit, opens new tab alleged.

In January, the Federal Trade Commission filed a lawsuit in Colorado federal court challenging Greystar’s fee practices, and the company— which manages over 800,000 residential units nationwide—is now also facing related consumer lawsuits in Texas and Maryland.”

Greystar did not immediately respond to requests for comment.

Greystar has denied the FTC’s allegations, and its motion to dismiss the case is still pending.

Greystar said in a Colorado federal court filing, opens new tab in the FTC’s lawsuit this month that the case “bears all the hallmarks of agency overreach.”

A new consumer lawsuit was filed by two apartment renters—one from San Diego and another from Los Angeles.

According to the lawsuit, South Carolina–based Greystar tacked on separate fees for pest control and trash service, which under California law should be included in rent. The plaintiffs argue that this practice makes comparing apartment options nearly impossible and suppresses competition in the market.

Their attorneys say this lawsuit differs from the FTC’s case because it specifically seeks to apply California’s competition and consumer protection laws to Greystar—and aims to secure refunds for state residents over the allegedly excessive charges.

The consumer lawyers also said, “in the current political climate, it is unclear whether the FTC’s action will proceed.”

The FTC did not immediately respond to requests for comment.”

The case is Kaidi Wu and Juhyun So v. Greystar Real Estate Partners, U.S. District Court, Southern District of California, No. 3:25-cv-01090-AGS-BLM.

For plaintiffs: Wesley Griffith of Cutter Law; F. Peter Silva II of Tycko & Zavareei; and Jeffrey Newsome of Varnell & Warwick

For defendant: No appearance yet