Hidden rental fees and security deposit deductions can make a seemingly affordable home much more expensive. Here’s what to check before signing a lease, moving in, and moving out.
You find a rental home advertised for $2,200 a month.
It looks like a good fit for your budget. The location works, the pictures look inviting, and the monthly rent seems manageable.
Then you receive the lease.
There’s a monthly smart home fee. A utility management charge. Maybe an administrative fee you hadn’t expected.
Suddenly, the home costs more than the price that caught your attention.
And even after moving in, there’s another financial question to consider: How much of your security deposit will you actually get back?
A major Federal Trade Commission (FTC) case announced on November 6, 2026, highlights why renters need to look beyond the advertised rent.
The agency and four states alleged that one of the nation’s largest single-family rental property managers misled renters about mandatory fees, move-in conditions, and security deposit deductions.
The lesson isn’t that every rental fee is improper.
It’s that you should know the total cost of a home before agreeing to rent it—and document its condition before you move in.
Why the FTC’s $49.75 Million Rental Case Matters
The FTC and officials from Arizona, Colorado, Indiana, and Utah announced a proposed $49.75 million settlement with Progress Residential and its owner, Pretium Partners.
Progress manages more than 90,000 rental homes across 17 states.
According to the FTC’s November 6 announcement, the companies allegedly advertised rental prices that excluded mandatory fees.
The complaint also alleges that tenants were charged inadequately disclosed fees, received homes that were not properly prepared for move-in, and lost security deposit money for conditions that were not their responsibility.
Examples identified by the FTC included:
- Monthly smart home fees
- Utility management fees
- Renter’s insurance exemption fees
- Unexpected one-time charges
- Security deposit deductions for ordinary wear and tear or preexisting damage
The proposed settlement includes $48.5 million intended for consumer redress through the FTC and $1.25 million payable to Arizona.
It also proposes requirements for clearer rental-price advertising, better move-in condition records, and more consistent security deposit practices.
The case remains pending court approval as of November 8, 2026. The allegations are not final judicial findings, and individual refund eligibility and timing have not been announced as finalized.
For renters, however, the case offers a practical reminder about three decisions that can affect thousands of dollars over a lease term.
Check #1: Calculate the Real Monthly Rent
The advertised rent is the starting point, not necessarily the amount you’ll pay every month.
Some rental properties include mandatory recurring charges for technology, utility administration, pest control, or other services.
If those charges are required to rent the home, they belong in your affordability calculation.
A $2,200 rental can cost more than you think
Consider this hypothetical example:
| Monthly rental expense | Amount |
|---|---|
| Advertised monthly rent | $2,200 |
| Mandatory smart home fee | $35 |
| Mandatory utility management fee | $20 |
| Other mandatory recurring charge | $15 |
| Total recurring monthly charge | $2,270 |
The additional fees total $70 a month.
Over 12 months, that’s $840 in extra recurring charges.
The calculation is simple:
$70 × 12 months = $840
That doesn’t include actual electricity, water, gas, internet, or other separately billed living expenses.
The figures above are illustrative—not the actual fees charged by Progress Residential.
Ask for a complete fee schedule
Before submitting an application or signing a lease, ask the landlord or property manager to identify every charge.
Separate the amounts into three groups:
Mandatory recurring fees: Charges you must pay each month as part of living in the home.
One-time fees: Application, lease administration, move-in, or similar charges that may apply once.
Conditional fees: Charges that apply only under specified circumstances, such as late payments, lease violations, or a failure to provide required insurance documentation.
Not every fee is necessarily unlawful. Whether it is permitted, how it must be disclosed, and whether it is refundable depend on the law and the agreement.
The key is to get the complete schedule in writing before committing to the rental.
The FTC separately advises rental shoppers to ask whether advertised prices include mandatory fees and to obtain written confirmation of any additional charges.
A message you can send before signing
Before moving forward, could you please provide the total required monthly rent, including all mandatory recurring fees? I’d also appreciate an itemized list of one-time charges and any conditional fees under the lease.
Save the response alongside the listing and proposed lease.
If the amounts change between the advertisement, application, and final lease, ask why before signing.
SavingQueen tip: Compare rental homes using the total recurring monthly cost, not just the number in the listing headline.
Check #2: Protect Your Security Deposit Before You Move In
A security deposit is supposed to address certain unpaid obligations or damage—not automatically become extra income for the landlord.
The FTC’s Progress Residential complaint alleges that tenants were sometimes charged for conditions that existed before move-in, normal wear and tear, or repairs that should have been the property owner’s responsibility.
These disputes can be difficult when neither side has reliable evidence of the home’s condition at the beginning of the lease.
That’s why your best protection starts before you unpack.
Document the condition of the home
When you receive possession of the property, inspect it carefully and record existing problems.
Look for issues involving:
- Walls, paint, doors, windows, and flooring
- Appliances, cabinets, countertops, and plumbing fixtures
- Water stains, leaks, mold concerns, or damaged surfaces
- Heating, cooling, locks, and other installed systems
- Yard, garage, and exterior areas included in the rental
Take clear photographs or videos. Capture close-ups of damage and wider images showing where the damage is located.
Keep the original files with their dates whenever possible.
If the landlord provides a move-in condition checklist, complete it accurately.
Don’t describe a damaged or malfunctioning item as being in good condition simply to finish the paperwork.
Send your findings to the landlord
A private photo album is useful, but a dated written notice can be even more valuable.
For example:
During our move-in inspection, we noticed scratches on the living room floor, a damaged bathroom cabinet door, and a stain near the kitchen ceiling. Photos are attached for documentation. Please confirm these conditions are included in the move-in record.
Keep the original email, attached photographs, and any response.
For repairs requiring prompt attention, follow the property’s maintenance request procedures and applicable local requirements.
SavingQueen tip: Keep a digital folder labeled with the property address and move-in date. Save the lease, inspection records, maintenance requests, photographs, and receipts in one place.
This takes some organization upfront, but it can make a security deposit dispute much easier to explain later.
Check #3: Review Every Security Deposit Deduction When You Move Out
The end of a lease can be expensive.
There may be moving costs, deposits for a new home, utility charges, and overlapping rent payments.
Losing part of an expected security deposit makes that transition even harder.
Before moving out, review your lease and the applicable state or local security deposit rules.
Normal wear and tear is different from tenant-caused damage
A home naturally changes with ordinary use.
Minor wear from everyday living is not the same as a broken fixture or damage caused by misuse.
For example, ordinary fading of paint over time may be considered normal wear, while a large hole in a wall caused by a tenant may be deductible damage.
The distinction depends on the circumstances and applicable law.
Preexisting damage is another issue. If a condition was already present when you took possession, your move-in records may help establish that fact.
Ask for a pre-move-out inspection
Where available, request a walk-through or pre-move-out inspection.
This can help identify potential problems while there is still an opportunity to address them.
Some states give tenants specific inspection rights. Others have different procedures.
Don’t assume the same rules apply nationwide.
Get an itemized explanation of deductions
If your landlord keeps part of your deposit, request a breakdown explaining each deduction and the supporting charges.
The FTC’s proposed Progress Residential settlement would require itemized explanations within 30 days after move-out or the period required by state law.
That proposed 30-day requirement is specific to the settlement—not a universal deadline for every U.S. landlord.
For example, California generally requires landlords to return the remaining security deposit and provide an itemized statement of deductions within 21 days after the tenant moves out, subject to statutory details and exceptions.
Other states have different rules.
You can review your state’s landlord-tenant resources through USA.gov’s tenant rights guide.
What if you disagree with the deductions?
Start by organizing the evidence.
Compare the landlord’s statement with your move-in photographs, move-out photographs, maintenance records, and lease terms.
If a charge appears incorrect, ask for clarification and any supporting invoices or records you’re entitled to receive.
Explain the specific deduction you’re disputing rather than simply saying the entire bill is unfair.
Keep communication professional and in writing.
If the dispute cannot be resolved, your options may include a state or local consumer protection agency, legal aid, mediation, or small claims court, depending on jurisdiction and the amount at issue.
Don’t Forget the Upfront Cost of Renting
The true cost of a rental isn’t only its monthly price.
A household may need significant cash before receiving the keys.
Consider another hypothetical example using the rental above:
| Upfront expense | Amount |
|---|---|
| First month’s recurring rent and mandatory fees | $2,270 |
| Security deposit | $2,200 |
| One-time administration fee | $175 |
| Total upfront cash needed | $4,645 |
This example assumes a full first month is due immediately, the stated deposit and fee are legally permissible, and no additional charges apply.
Application fees, pet-related costs, utility deposits, or prepaid rent may change the total.
Some of the money, such as a refundable security deposit, may eventually be returned. But you still need the cash available when moving in.
It’s useful to compare three numbers before choosing a rental:
Monthly recurring cost: What you must pay regularly.
Move-in cash requirement: What you need before or when taking possession.
Potential move-out exposure: What you may owe for legitimate unpaid charges or damage.
A home may fit your monthly budget but still require more upfront cash than you can comfortably afford.
What About Renter’s Insurance Fees?
The FTC’s complaint also discusses a renter’s insurance exemption fee that some consumers allegedly discovered only after receiving a bill.
A renter’s insurance exemption fee is not necessarily the same thing as purchasing renter’s insurance.
Before signing, ask whether the lease requires you to maintain renter’s insurance, the minimum coverage requirements, how proof must be submitted, and what happens if documentation expires or is not received.
Also ask whether you may choose your own eligible insurer.
If a fee is described as an insurance-related charge, find out what it covers—and whether it provides insurance at all.
A fee for failing to provide proof should not be assumed to offer the same protection as a renter’s insurance policy.
The SavingQueen Rental Cost Checklist
Before signing:
- I have the total monthly price, including all mandatory recurring fees.
- I have an itemized list of one-time and conditional charges.
- I understand the renter’s insurance requirements.
- I know how much cash is needed before move-in.
- I saved the advertisement, proposed lease, and fee schedule.
During move-in:
- I photographed and documented the property’s condition.
- I submitted existing damage and maintenance issues in writing.
- I saved my inspection records and the landlord’s responses.
Before moving out:
- I reviewed the lease and applicable state deposit rules.
- I requested a pre-move-out inspection where available.
- I photographed the cleaned and vacated property.
- I provided my forwarding address as required.
- I saved the deposit statement and supporting documentation.
What If You Rented From Progress Residential?
If you are a current or former Progress Residential tenant, keep your lease, payment records, billing statements, move-in and move-out photographs, and security deposit correspondence.
The proposed settlement includes funds intended for consumer redress, but the FTC has not yet established a final, publicly confirmed individual refund process in the case information reviewed for this article.
Do not pay an outside party that claims it can guarantee your share of a settlement.
Follow the official FTC Progress Residential case page for updates about court approval and any refund instructions.
Bottom Line: Know the Full Rental Cost Before You Commit
The FTC’s case against Progress Residential highlights two expenses renters sometimes overlook: mandatory fees that increase monthly housing costs and security deposit deductions that arise after moving out.
The best time to understand a rental home’s costs is before signing the lease.
And the best time to protect your security deposit is before moving furniture into the home.
Ask for the full price in writing. Document the condition of the property. Keep your records until your deposit is resolved.
Those simple habits can help you compare rental homes more accurately and make it easier to challenge charges that don’t appear justified.
A rental home should fit your budget based on what you’ll actually pay—not just the number that first appeared in the advertisement.
Information verified November 8, 2026. This article provides general consumer education, not individualized legal advice. Rental fee disclosures, security deposit limits, inspection rights, deduction rules, and return deadlines vary by state and locality.
Official Sources
- FTC — Progress Residential and Pretium Partners Proposed $49.75 Million Settlement, November 6, 2026
- FTC — Progress Residential Case and Court Documents
- FTC — Moving? Watch for Rental Scams
- FTC — Invitation Homes Rental Fees and Deposit Consumer Guidance
- USA.gov — Tenant Rights and Landlord Complaints
- California Courts — Guide to Security Deposits
