Colorado announces $7 million rent 'scheme' settlement

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(The Center Square) – Colorado Attorney General Phil Weiser announced a proposed settlement with apartment rental company Greystar over an alleged “anticompetitive scheme.”

Colorado joined eight other states in suing the company over the alleged scheme back in January, which they say systematically drove up rental prices.

If the settlement is approved by the courts, Greystar will pay $7 million to the states and agree to new limits on its use of rent-setting algorithms and data-sharing platforms. Colorado alone would receive over $1 million in the settlement, which it said it would use to support antitrust enforcement, consumer protection work, and related investigations.

Weiser applauded the proposed settlement.

“Coloradans are struggling to pay monthly rent. When corporate landlords share private data and use algorithms to coordinate and jack up rent prices, renters pay the price,” he said. “This settlement sends a clear message: We will not tolerate practices that enable collusion, harm competition and make housing less affordable for Coloradans.”

Greystar, which is one of the largest providers of rental housing in Colorado managing approximately 45,000 units, was just one of the companies involved in the case. At the beginning of the year, the states sued six of the nation’s largest landlords for “pricing schemes.” Colorado’s litigation continues against the other landlords.

The U.S. Justice Department also took similar measures last January. It reached a proposed settlement with Greystar in August.

Besides Weiser, attorneys general filing the lawsuit were from California, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon and Tennessee.

This is not the only rental lawsuit Colorado has filed against Greystar. Earlier this year, it sued the company for allegedly charging “junk fees,” as previously reported by The Center Square.

Colorado was joined by the Federal Trade Commission on the lawsuit, which did its own investigation into the fees. The investigation found that Greystar failed to pre-disclose “mandatory recurring fees charged to tenants.”

Greystar’s actions are a violation of the Colorado Consumer Protection Act, according to the Attorney General’s Office. If the company loses the lawsuit, it could face a permanent injunction, monetary relief and civil penalties.

Greystar said at the time of the lawsuit’s filing that “the complaint is based on gross misrepresentations of the facts and fundamentally flawed legal theories.”

“No resident at a Greystar-managed community pays a fee they have not seen and agreed to in their lease,” it added.

In another effort to address those fees, which opponents say add to already rising housing costs, Colorado passed comprehensive legislation in the 2025 legislative session.

House Bill 1090, titled “Protections Against Deceptive Pricing Practices,” requires sellers to clearly disclose the total price of goods and services. The law also restricts which fees landlords may charge.

It was signed into law in April and is part of a broader package of bills from Democrats, all looking to address the state’s housing prices. No Republicans voted to support the legislation, which received unanimous approval from Democrats.