Attention multi-tenant housing property managers and owners: The FTC has issued warning letters emphasizing the need for accurate and complete pricing information when marketing rental housing. This aligns with recent enforcement actions by state Attorneys General and new laws prohibiting algorithmic rental pricing. In just the last six weeks, Spokane, Portland, and New York State have implemented such laws.

Recommended Actions:

1. Review Marketing Practices: Ensure consumers receive clear, comprehensive, and accurate details about rental prices, fees, deductions, and related costs on your website and any third-party services used for marketing.
2. Assess Pricing Practices: Determine if you use competitively sensitive information, or software or services that leverage such data, to set or adjust rental prices, lease renewal terms, occupancy levels, or other lease terms and conditions. If you do, consider risks under applicable laws.
3. Update Consumer Disclosures: Provide clear information about fees, pricing, deductions, and the use of personal or financial data in marketing or pricing and ensure consumers can easily find such information.

This review should include rental property websites, third-party service providers, and advertising platforms.

What’s at Stake?

The FTC warns that it may be unlawful to:

• Exclude mandatory fees from advertised prices.
• Fail to disclose the amount and purpose of fees or whether they are mandatory.
• Misrepresent deductions from security deposits, or
• Collect payments without clear disclosures of total costs.

Additionally, practices involving algorithmic pricing or the use of competitively sensitive information may be deemed unfair, deceptive, or anticompetitive.

For more insights, check out the FTC’s blog: Are you managing a rental property? Lessons from the FTC’s lawsuit against Greystar.

Stay proactive and ensure compliance to avoid enforcement actions. If you have questions or need assistance, reach out to our team.

This article summarizes aspects of the law and opinions that are solely those of the authors. This article does not constitute legal advice. For legal advice regarding your situation, you should contact an attorney.