Progress Residential, the property manager of single-family rental homes owned by Pretium Partners, has agreed to pay $49.8 million to settle deceptive and unfair practices claims by the Federal Trade Commission (FTC) and state regulators. The company denies any wrongdoing.
In a complaint filed in the U.S. District Court for the Northern District of Georgia, regulators alleged that the company advertised rental prices that did not reflect the full amount tenants would be required to pay, imposed hidden or inadequately disclosed fees and charges, and mishandled security deposits.
The claims also included that Progress misrepresented the condition and move-in readiness of properties, restricted tenants’ ability to share reviews, and failed to adequately address tenant complaints and maintenance issues.
In a statement given to HousingWire, a representative of Progress Residential and Pretium said the companies have reached an agreement “with the FTC and four states to resolve the Commission’s Civil Investigative Demand related to certain aspects of our resident experience during the period of 2021 to 2025.”
“The agreement contains no admission of wrongdoing, and we maintain Progress’ practices have been transparent, fair, and consistent with industry practice,” the spokesperson said. “Although we disagree with the FTC’s claims, this resolution allows us to move forward with our mission of expanding access to quality, affordable rental housing in neighborhoods of opportunity.”
The deal was reached by the FTC, the attorneys general of Arizona, Indiana and Colorado, and the Utah Division of Consumer Protection. It combines monetary relief for renters across the country.
“We will always welcome investment in housing and recognize the important role private capital can play in increasing opportunities for Hoosier families,” Indiana Attorney General Todd Rokita said in a statement. “But no company, regardless of size or financial backing, gets a free pass to mislead consumers, impose hidden charges or treat tenants unfairly.”
“Consumers searching for housing should have access to straightforward information about the costs associated with renting a home,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “Transparency regarding rental prices and fees helps consumers compare options and make informed choices. Clear pricing practices also support competition by allowing housing providers to compete on the basis of price, quality and service.
“The FTC is monitoring the rental housing market and will continue to take action where appropriate to ensure that consumers receive clear and accurate information about the costs of renting a home.”
Per the settlement terms, Progress must disclose the total monthly rental price in advertisements and listings, along with mandatory fees and charges, before a consumer commits to rent. The company also must stop withholding funds for ordinary wear and tear and is prohibited from misleading claims about property conditions.
The consumer redress funds created by the settlement total $48.5 million and will be used for relief as directed by the stipulated order entered in the federal case. Arizona is receiving $1.25 million.
In 2024, Invitation Homes, the largest owner of U.S. single-family rental homes, agreed to pay $48 million to consumers and change some of its practices.
Editor’s note: This story was updated with a statement from the FTC.
