The settlement, filed in U.S. District Court for the Northern District of Georgia, resolves claims brought by the FTC along with the states of Arizona, Colorado, Indiana and Utah. Progress Residential is among the largest operators of single-family rental homes in metro Atlanta, managing roughly 10,000 houses in the region, according to company figures.

The FTC alleged that the companies advertised rental prices that did not reflect the true monthly cost, tacked on undisclosed fees, failed to inspect homes before tenants moved in, improperly withheld portions of security deposits, and restricted customers from leaving negative reviews. Regulators also said the company failed to provide adequate customer service.

"These hidden fees cost consumers millions of dollars," the FTC said in a release, adding that the companies "have moved fees around" in ways that obscured the true cost of renting.

Under the proposed order, Progress Residential and Pretium would be required to advertise a total monthly rental price that includes all mandatory fees, stop misleading renters about costs, and make it easier for tenants to move out. The settlement also bars the companies from retaliating against renters who post negative reviews and requires them to establish a process for refunding security deposits. In addition, the companies must inspect homes before renters move in and cannot deduct certain disputed charges from deposits.

Progress Residential said in a statement that it has improved its practices over the past several years and that the agreement allows it to move forward.

"We welcome the industry-wide standards related to rental pricing and fee disclosure efforts," the company said, adding that it "stands behind the experience" it provides residents.

The settlement is the largest enforcement action the FTC has taken against a single-family rental landlord, and it follows a separate 2024 FTC lawsuit against Invitation Homes, another large institutional owner with a significant Atlanta presence.

The case lands in a region that has become a national focal point for investor-owned housing. Metro Atlanta leads the country in investor-owned single-family rental homes, with roughly 27,000 such properties, according to a Wall Street Journal analysis of American Community Survey data. Critics say large institutional landlords can outcompete families for homes and drive up costs, while the industry argues it expands housing supply and helps families who cannot or do not want to buy.

"Institutional investors can buy and sell homes for profit, but they cannot buy their way out of accountability," said Chris Carr, Georgia's attorney general, whose office participated in the settlement.

Consumer advocates said the agreement sends a message to landlords across the region.

"This settlement is a significant step toward ensuring renters have clear information about the true cost of their homes," said Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection. "The market will continue to monitor rental practices to make sure consumers receive appropriate and accurate information."

The proposed settlement still requires approval by a federal judge. If approved, the $49.75 million would be distributed to affected renters and the participating states.