Progress Residential must disclose full rental costs under $48.5 million settlement

Indiana Attorney General Todd Rokita recently announced a $48.5 million settlement from major landlords over alleged deceptive rental practices.

Here's what to know

The settlement involved Progress Residential LLC and its parent company, Pretium Partners LLC, over what a federal complaint alleged was deceptive and predatory behavior, as reported by WishTV.

The bipartisan enforcement action also involved attorneys general from Arizona and Colorado, Utah's Division of Consumer Protection, and the Federal Trade Commission, per WBIW.

The complaint alleged that renters were not provided with the actual rental costs as hidden and undisclosed fees were excluded. Additionally, it alleged that the corporation unfairly handled renters' security deposits and restricted renters' complaints and online reviews.

In the complaint, the plaintiffs write, "Progress Residential LLC is one of the largest landlords of single-family rental homes in the United States. It currently manages over 90,000 rental homes across 17 states. Progress's value proposition is 'we make things easy.' … But internally, the company executives admit the truth: Progress provides a 'broken customer experience,' or as a Progress senior marketing executive put it, 'we are not delivering on our promise.'"

In addition to the $48.5 million settlement, the rental giant agreed to make concessions which would protect its renters. For example, the company agreed to itemize its reasoning for not returning a full security deposit, and also stop charging tenants for basic wear and tear, per WRTV.

Additionally, as reported by WBIW, Progress Residential must clearly and accurately state its rental prices in listings and ads, stop making misleading claims about its properties, stop preventing renters from sharing negative reviews, and allow tenants to dispute fees without retaliation.

In a press statement on the settlement, Rokita explained that "No company, regardless of size or financial backing, gets a free pass to mislead consumers, impose hidden charges or treat tenants unfairly. This settlement sends a clear message: If you do business in Indiana, you must deal honestly and comply with the law."

Where can I learn more?

Rental fees and unexpected charges have sparked disputes elsewhere, too. 

• A D.C. class action alleges Zillow added an illegal rent payment fee online.

• A New York lawsuit alleges Blackstone overcharged rent-stabilized tenants by $30 million.

• San Diego tenants formed a council and won after utility bills reached $289.

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