Four Star Realty to pay $1M for illegally billing Colorado renters
A Front Range property management company has agreed to pay about $1 million to the state after illegally billing tenants for standard apartment services like repairs, the Colorado Attorney General’s Office announced Tuesday.
Boulder-based Four Star Realty reached the settlement with Attorney General Phil Weiser after an investigation by the Colorado Department of Law exposed multiple instances of the company charging renters for unnecessary work, unrelated damages and other fees not outlined in their leases.
The settlement marks the first time the Department of Law has taken action since a state law went into effect in May 2022 that allowed the attorney general to investigate potential legal violations of housing laws and to utilize civil and criminal enforcement actions. The law also formed the fair housing unit within the agency.
Four Star manages apartments in Boulder, Denver, Fort Collins and Greeley. The state plans to return $980,000 of that settlement to affected consumers, and a process for recompensation will be announced in the future, the attorney general’s office said.
The Department of Law ordered the company to send it a list of residents who vacated their properties from January 2020 through Dec. 1, 2023.
“Too often, landlords and property management companies nickel and dime tenants by deceiving them into paying for things like normal wear and tear or damage from previous tenants, or by charging fees not reflected in leases,” Weiser said in a statement. “For consumers who are able to act effectively as their own lawyers, they may complain and get their money back; most consumers, however, are unable to do so and are mistreated in violation of the law.”
The Colorado Attorney General’s Office and the 20th Judicial District Attorney’s Office in Boulder spent more than a year on their investigation, which initially was spurred by occupant complaints.
Four Star is now required to disclose all costs to renters in their leases. It must also cut its repainting charges, and reevaluate the necessity of carpet cleaning before levying a fee. It must keep documentation about property inspections and withheld security deposits for three years, and share them with any tenants who ask.
Four Star can’t retain money from a security deposit, including for rekeying, unless the withholding is “directly related to the tenant’s conduct.” It can only charge for rekeying if leasees opt for Four Star rekey locks, with prices made transparent in advance.
With more than 600 reviews on Google, the company has earned a 2.9-star rating out of 5. The most recent reviews posted within the past few months either give the company very low or very high scores, with the 5-star ratings often complimenting specific employees.
Max Marshall called Four Star “fraudulent, unprofessional, dishonest, disrespectful, and downright criminal” in his 1-star review, pointing to hidden fees, apartment break-ins and inconsistent power. “This may very well may be the worst property management company in America,” he wrote.
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A Front Range property management company has agreed to pay about $1 million to the state after illegally billing tenants for standard apartment services like repairs, the Colorado Attorney General’s Office announced Tuesday.
Boulder-based Four Star Realty reached the settlement with Attorney General Phil Weiser after an investigation by the Colorado Department of Law exposed multiple instances of the company charging renters for unnecessary work, unrelated damages and other fees not outlined in their leases.
The settlement marks the first time the Department of Law has taken action since a state law went into effect in May 2022 that allowed the attorney general to investigate potential legal violations of housing laws and to utilize civil and criminal enforcement actions. The law also formed the fair housing unit within the agency.
Four Star manages apartments in Boulder, Denver, Fort Collins and Greeley. The state plans to return $980,000 of that settlement to affected consumers, and a process for recompensation will be announced in the future, the attorney general’s office said.
The Department of Law ordered the company to send it a list of residents who vacated their properties from January 2020 through Dec. 1, 2023.
“Too often, landlords and property management companies nickel and dime tenants by deceiving them into paying for things like normal wear and tear or damage from previous tenants, or by charging fees not reflected in leases,” Weiser said in a statement. “For consumers who are able to act effectively as their own lawyers, they may complain and get their money back; most consumers, however, are unable to do so and are mistreated in violation of the law.”
The Colorado Attorney General’s Office and the 20th Judicial District Attorney’s Office in Boulder spent more than a year on their investigation, which initially was spurred by occupant complaints.
Four Star is now required to disclose all costs to renters in their leases. It must also cut its repainting charges, and reevaluate the necessity of carpet cleaning before levying a fee. It must keep documentation about property inspections and withheld security deposits for three years, and share them with any tenants who ask.
Four Star can’t retain money from a security deposit, including for rekeying, unless the withholding is “directly related to the tenant’s conduct.” It can only charge for rekeying if leasees opt for Four Star rekey locks, with prices made transparent in advance.
With more than 600 reviews on Google, the company has earned a 2.9-star rating out of 5. The most recent reviews posted within the past few months either give the company very low or very high scores, with the 5-star ratings often complimenting specific employees.
Max Marshall called Four Star “fraudulent, unprofessional, dishonest, disrespectful, and downright criminal” in his 1-star review, pointing to hidden fees, apartment break-ins and inconsistent power. “This may very well may be the worst property management company in America,” he wrote.
Get more real estate and business news by signing up for our weekly newsletter, On the Block.
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