INDIANAPOLIS — Indiana is part of a $48.5 million nationwide settlement with one of the country’s largest single-family rental companies over accusations of deceptive fees, security deposit practices and poor property maintenance.
Attorney General Todd Rokita announced the settlement Monday involving Progress Residential LLC and its parent company, Pretium Partners LLC. The agreement also requires the companies to change how they advertise rental prices, handle security deposits and respond to tenant complaints.
Indiana joined the Federal Trade Commission and officials from Arizona, Colorado and Utah in the enforcement action.
A federal complaint filed in the Northern District of Georgia says the companies advertised rental prices that did not include the full cost tenants were required to pay. It also accused them of imposing improperly disclosed fees, mishandling security deposits, misrepresenting property conditions and failing to adequately address maintenance requests.
The complaint also claims the companies restricted tenants from sharing reviews and experiences.
Under the settlement, the companies must disclose total monthly rental costs in advertisements and clearly identify mandatory fees before tenants agree to rent a property.
They also must provide itemized explanations for security deposit deductions, stop charging tenants for ordinary wear and tear and maintain documentation supporting deductions.
The agreement requires improvements to maintenance and customer service practices. It also prohibits the companies from enforcing contractual terms that unlawfully restrict tenant reviews and requires them to give renters a way to dispute fees without losing the ability to pay rent.
The settlement provides $48.5 million in consumer relief nationwide. The funds will be distributed as directed by the court’s order.
Rokita’s office said its Consumer Protection Division and Homeowner Protection Unit helped investigate the companies and develop claims under Indiana consumer protection laws.
The complaint and settlement order are available through the Indiana Attorney General’s Office.
