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Progress Residential to pay $49.75 million in FTC settlement
The nation's largest single-family rental manager will pay $49.75 million to settle Federal Trade Commission and four-state claims that it deceived renters for years, with Arizona receiving $1.25 million. Tenants say the company's practices â from hidden fees to ignored repair requests â made life miserable.
PHOENIX â Progress Residential, the country's largest property manager of single-family homes, has agreed to pay $49.75 million to settle claims brought by the Federal Trade Commission and four states, including Arizona, over allegations that it misled renters and cost them tens of millions of dollars.
Arizona will receive $1.25 million as part of the settlement, according to the FTC. The agency has not yet said how or when affected renters will be paid.
The complaint, filed by the FTC and the four states, accused Progress Residential of advertising false rental prices, failing to inspect homes before tenants moved in, improperly deducting money from security deposits, restricting negative reviews, failing to provide adequate customer service, and charging hidden fees â including a smart home fee and a renter's insurance exemption fee.
Samantha Fequiere, a Progress Residential tenant, said she is preparing to move out after less than a year.
"I kind of feel like I'm in a bad relationship. I've got to just get out," she said.
Fequiere described a pattern of problems with the property manager, including a dispute about payments and repair requests that went unanswered.
"A ticket was open. Somebody would come in and say, 'Oh, I can't fix that screen on the window. I can't fix this. I can't fix that,' and then after they've kind of shined you on they close the ticket," she said.
She also said the company told her she needed $100,000 of insurance for the property.
"If you went without the insurance, you were charged $15," Fequiere said. She paid the $15 every month because she couldn't get the required coverage.
"I would call insurance companies, and they said, 'Well, what do you have that's worth $100,000?' And I was like, 'I'm not that wealthy. I don't think I have anything.'"
As part of the settlement, Progress Residential will be required to change its business practices. The company will advertise a true total monthly rental price and establish a security deposit refund process. It will also be prohibited from deducting money from security deposits for normal wear and tear.
"I am extremely relieved," Fequiere said.
In a statement, Progress Residential 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 settlement comes as Arizona renters continue to face rising housing costs and limited protections. Single-family rental companies like Progress Residential have expanded rapidly in recent years, often buying up homes in Phoenix and other Sun Belt markets. Critics argue that corporate landlords can use their market power to impose fees and neglect maintenance, leaving tenants with few options.
The FTC has not released details on how consumers will be compensated. Renters who believe they were affected are encouraged to monitor the agency's website for updates.