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When you’re deciding on a place to rent, price matters. But what if you discover the advertised monthly rent doesn’t match what you end up paying? That’s what the FTC and four states allege happened to residents of Progress Residential, LLC, the largest property manager of single-family rental homes in the country. So what does all this mean for Progress renters — and other renters?

According to the FTC and state plaintiffs, Progress charged a variety of mandatory fees — “smart home” and “utility maintenance” fees and others — that Progress didn’t include in its advertised monthly rental prices. And over the past five years, these hidden fees have cost tenants tens of millions of dollars. What else? The FTC and state plaintiffs also allege that Progress didn’t always inspect homes before residents moved in. Then, Progress often withheld tenants’ security deposits for costs associated with normal wear and tear or damage that was already there before renters moved in. 

To settle these and other charges, Progress and its private-equity owner, Pretium Partners, LLC, will pay $48.5 million in redress to affected renters. 

Are you looking for a place to rent? Here are some ways to protect yourself:

Be on the lookout for hidden fees. Does the advertised monthly rental price include all mandatory fees? Renters have reported seeing fees buried in footnotes, hyperlinks, or fine print. Before you spend money on application or holding fees for a rental, ask the leasing agent to confirm in writing the monthly rent you’ll pay, including any mandatory fees.

Document the condition of your unit. Take photos as soon as you move in and send them to your landlord right away, especially if there’s any damage. Also report appliances or systems that don’t work. When you move out, take pictures again. And to avoid surprises, request a pre-moveout inspection to find out about any potential deductions. Ask the landlord to include an itemized list of anything deducted from your security deposit refund.

And if you see or experience hidden fees or other deceptive rental practices, tell the FTC: ReportFraud.ftc.gov.

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