Summary
Invitation Homes, the largest single-family home landlord in the United States, has agreed to a $48 million settlement with the Federal Trade Commission (FTC) following allegations of deceptive practices that harmed renters. The settlement addresses claims that the company misled tenants about lease costs, charged undisclosed fees, withheld security deposits unjustly, and engaged in unfair eviction practices, particularly during the COVID-19 pandemic.
The FTC’s investigation revealed that Invitation Homes charged substantial “junk fees” that were not disclosed until after renters signed leases, significantly inflating rental costs by over $1,700 annually. Additionally, the company was accused of failing to inspect properties before tenants moved in, resulting in numerous complaints about living conditions. The settlement requires Invitation Homes to change its business practices, which include providing transparent pricing and fairer handling of security deposits. The agreement is pending approval from a federal judge, and the funds will be used to refund affected renters.
Key Allegations Against Invitation Homes
- Undisclosed Fees: The FTC found that Invitation Homes charged mandatory fees for services such as smart home technology and utility management, which were not included in advertised rental rates.
- Withholding Security Deposits: The company allegedly retained security deposits without justification, often charging tenants for normal wear and tear or damages that existed prior to their occupancy.
- Unfair Eviction Practices: During the pandemic, Invitation Homes reportedly misled tenants about their eviction rights, steering them away from federal protections and initiating eviction proceedings against those who had already vacated their homes.
Impact on Renters
If the settlement is approved, the $48 million will be allocated to reimburse renters who were affected by these practices. The agreement also mandates that Invitation Homes must improve transparency in its leasing practices, ensuring that all fees are disclosed upfront and that security deposits are not withheld for regular maintenance issues. This settlement marks a significant step in addressing the concerns raised by the FTC about corporate landlords and their treatment of tenants.
Sep. 25 / Benzinga “ The Federal Trade Commission (FTC) has filed a complaint against Invitation Homes Inc INVH , the largest U.S. landlord of single-family homes, for engaging...
Invitation Homes deceived renters and will refund $48 million, FTC says
Sep. 24 / Cbs News “ Invitation Homes has agreed to pay $48 million to settle federal claims that the nation's biggest landlord for single-family homes deceived renters about...
Sep. 24 / Wfaa “ ATLANTA — The country's largest landlord will pay the government $48 million in a settlement announced Tuesday for a range of exploitative business...
Single-family landlord Invitation Homes misled consumers over cost of a home, the FTC alleges
Sep. 24 / L.a. Times “ Invitation Homes, the nation’s largest single-family landlord, has agreed to pay $48 million to settle a handful of allegations, including that it illegally...
Invitation Homes agrees to pay $48M settlement with FTC
Sep. 24 / The Business Journals “ The federal complaint alleges the single-family landlord deceived renters about leasing costs, withheld security deposits and used unfair eviction practices.
Invitation Homes agrees to pay $48M settlement to FTC
Sep. 24 / The Business Journals “ The federal complaint alleges the single-family landlord deceived renters about leasing costs, withheld security deposits and used unfair eviction practices.
Landlord with thousands of NC homes sued by feds. Here’s how much renters could get back
Sep. 24 / Yahoo! News “ Invitation Homes, a national landlord with , faces a federal lawsuit with undisclosed fees, withheld security deposits and practiced unfair eviction...
Sep. 24 / Business Insider “ Invitation Homes is poised to pay over $48 million in a settlement with the FTC. The FTC allegations included hidden fees, unfair evictions, and withholding...