Boulder-based Four Star Realty recently agreed to a settlement in which it would pay the State of Colorado $1 million over what Attorney General Phil Weiser and Boulder County District Attorney Michael Dougherty called “deceptive,” “unfair,” and “unlawful” business practices.
Since 1986, Four Star has managed over 4,000 property units in Boulder, Fort Collins, Greeley, and Denver. The majority of its clients are college students in those areas.
BizWest editor and publisher Chris Wood joined KUNC host Michael Lyle Wednesday to discuss the illegal practices Four Star Realty was accused of.
"The state said the property management company unlawfully withheld portions of security deposits paid by renters," said Wood. "These are costs that the state said should have been borne by the property owner."
Wood said the state also accused Four Star of scheduling some maintenance, such as cleaning, painting, and carpet cleaning, months before a tenant moved out - even if that work turned out to be unnecessary after an inspection.
In their settlement, Four Star did not admit any wrongdoing. However, Wood said they entered into the settlement agreement to avoid further inconvenience and the costs of potential litigation.
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"The bottom line is, Four Star agreed to change some of its practices and processes and must pay the settlement," said Wood. "Nearly all of that settlement will be paid out in installments over the next year, and is earmarked for restitution payments to tenants of Four Star properties, which are typically owned by third parties."
Wood said Wiser also announced last week that the Four Star settlement likely will not be the last of its kind that Colorado pursues on behalf of renters.
