Protecting Apartment Renters: How the FTC’s New Rule on Fake Reviews Affects Your Search for a Home

Finding the perfect apartment can be a daunting task. Between comparing amenities, calculating rent affordability, and visiting potential homes, renters rely heavily on online reviews to make informed decisions. But what happens when those reviews are misleading, purchased, or outright fake? The Federal Trade Commission (FTC) has taken a significant step to protect consumers, including apartment renters, by introducing a new rule that cracks down on fake reviews and deceptive testimonials.

The Problem with Fake Reviews in the Apartment Rental Market

In the digital age, online reviews are a cornerstone of the apartment-hunting process. Positive reviews can paint a picture of a dream apartment, while negative ones can serve as red flags. Unfortunately, some apartment communities and property management companies have been known to manipulate reviews to attract renters. They might pay for positive reviews, suppress negative ones, or even create fake testimonials from family members, friends, or even other business employees, to enhance their online reputation. These deceptive practices not only mislead potential renters but also distort the market, making it difficult for honest businesses to compete.

What the FTC’s New Rule Means for Renters

The FTC’s final rule, announced on August 14, 2024, directly addresses these issues by prohibiting the sale or purchase of fake reviews and testimonials. Here’s how this rule benefits apartment renters:

Authenticity in Reviews: The rule specifically bans fake resident and prospect reviews and testimonials. This means that renters can trust that the reviews they read are more likely to reflect real experiences in the community. Whether the review is glowing or critical, it must be written by someone who has actually lived in the apartment or interacted with the property management company.

No More Bought Sentiments: The rule also prohibits businesses from providing incentives for writing reviews with a specific sentiment—whether positive or negative. This ensures that reviews are honest and not influenced by compensation, giving renters a clearer picture of what to expect.

Transparency from Insiders: Reviews written by company insiders, such as employees, family members, friends, etc., must now clearly disclose their connection to the business. This transparency allows renters to consider potential biases when reading reviews, helping them make more informed decisions.

Fair Representation on Company-Controlled Websites: Some apartment communities manage their own review websites, giving the impression of independent feedback. The FTC’s rule prohibits these companies from misrepresenting the independence of such sites. Renters can now be more confident that they’re reading unbiased reviews, even on company-managed platforms.

Protection from Review Suppression: The rule also addresses the suppression of negative reviews. Renters can feel more secure knowing that a property management company cannot legally intimidate or threaten tenants into removing or changing reviews. They also cannot misrepresent their reputation by showcasing only positive reviews or selected reviews on their websites or company-controlled websites. This leads to a more balanced and truthful representation of the apartment community online.

Crackdown on Fake Social Media Influence: With the rise of social media, some property management companies have turned to influencers to boost their reputation. The FTC’s rule prohibits the purchase of fake followers or views, ensuring that any social media influence is genuine. Renters following apartment communities on social media can now trust that the engagement they see is real.

What You, the Renter, Can Do

While the FTC’s rule is a significant step forward, renters should still practice due diligence when researching potential apartments. Here are a few tips:

Look for Detailed Reviews: Genuine reviews often contain specific details about the renter’s experience. Be wary of overly vague or generic reviews, especially if they’re all overwhelmingly positive.

Look for Verified Reviews: ApartmentRatings’ verified reviews come from direct renter communication, ensuring that there is no misrepresentation or opportunity to cheat or fake the review. Look for the ‘Verified Prospect’ or ‘Verified Resident’ stamp or Filter by verified reviews to ensure you are getting trustworthy feedback from real renters.

Cross-Check Multiple Sources: Don’t rely solely on reviews from one website. Check multiple platforms to get a well-rounded view of the apartment community. Reading a variety of reviews can help you identify consistent patterns—both positive and negative—that might not be as evident if you only rely on one source.

Watch for Disclosures: Pay attention to reviews that mention the reviewer’s relationship with the company or mention an incentive to write the review. Transparency is key to understanding potential biases. Certain review platforms issue warnings about communities that don’t adhere to ethical review practices. For example, ApartmentRatings uses a “Word of Caution” to alert prospective renters that some reviews for a particular community may be fake or incentivized. This warning encourages renters to scrutinize the reviews more carefully before making decisions. 

Use Social Media Wisely: Follow apartment communities on social media, but be cautious of influencers who might be paid to promote a property. Influencers and brand ambassadors are sometimes paid or incentivized to promote certain properties. While these posts can be informative, they might not always present the full picture. To get a more accurate sense of what living in the community is really like, look for organic engagement from actual residents.

The FTC’s new rule is a powerful tool in the fight against deceptive practices in the apartment rental market. By banning fake reviews and enforcing transparency, the rule aims to help protect renters from making costly mistakes based on misleading information. While the rule goes into effect October 2024, the FTC will need assistance in their continued efforts to limit fake reviews. The FTC provides resources to consumers on how they can help report suspicious reviews. Additionally, it is still important to remain vigilant and critically assess the feedback you encounter online. Continue to be aware that some deceptive practices may persist, and carefully evaluate reviews to make more informed decisions during your apartment search.