Progress Residential, the largest property manager of single-family rental homes in the U.S., will pay $49.75 million to settle charges brought by the Federal Trade Commission and four states that it engaged in deceptive practices, according to a press release from the federal agency.

Progress Residential is owned by private equity firm Pretium Partners and was accused by the FTC of several different types of deceptive practices since 2021, including charging hidden fees, billing errors, and a failure to properly clean homes before renters moved in.

According to the FTC’s complaint, Progress even had a policy of using Photoshop to make rental properties appear ready for occupancy. Internal company guidelines instructed employees and vendors to digitally remove dirt and other defects from listing photos and even insert appliances that were missing from properties.

The company also allegedly deducted various amounts from security deposits over basic wear and tear, prohibited negative reviews, and didn’t provide “adequate customer service,” according to the FTC.

Some of the junk fees included “smart home” and “utility management” fees that were later tacked on after not being disclosed in the advertised price for a rental.

The company “unfairly charged a myriad of one-time and situational fees,” according to the FTC, including a “renter’s insurance exemption fee” for not providing proof of renters’ insurance. The FTC said this fee was often only discovered after a tenant received their first monthly bill.

The company also claimed that it would only deduct money from renters’ security deposits for damage beyond normal wear and tear.

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