Summary
Invitation Homes, the largest single-family home landlord in the U.S., is set to pay $48 million to settle allegations from the Federal Trade Commission (FTC) regarding deceptive practices. The FTC accused the company of misleading tenants about rental costs, imposing undisclosed fees, and engaging in unfair eviction practices, particularly during the COVID-19 pandemic.
The allegations against Invitation Homes include charging mandatory “junk fees” that significantly raised the overall rental costs without proper disclosure. These fees, which could amount to over $1,700 annually, were often hidden until tenants signed leases or moved in. Additionally, the company was found to systematically withhold security deposits, frequently citing damages that were either non-existent or classified as normal wear and tear. The FTC also highlighted that Invitation Homes misled tenants regarding their rights during eviction processes, particularly by steering them away from federal protections available during the pandemic. Under the proposed settlement, Invitation Homes will be required to change its business practices, including providing transparent lease pricing and fair security deposit policies, pending approval from a federal judge.
Key Allegations
- Undisclosed Fees: Invitation Homes charged renters mandatory fees for services like smart home technology and utility management, which were not included in advertised rental rates.
- Security Deposits: The company allegedly withheld security deposits unfairly, returning them only about 39% of the time, compared to the national average of 64%.
- Unfair Eviction Practices: The FTC claimed that Invitation Homes misled tenants about eviction protections during the pandemic and initiated eviction proceedings against tenants who had already vacated their homes.
Settlement Requirements
The settlement mandates several changes to Invitation Homes’ operations: - Refunds: The company will pay $48 million to affected renters. - Transparent Pricing: Invitation Homes must disclose all mandatory fees in its advertised rental prices. - Fair Security Deposit Policies: The company cannot withhold security deposits for normal wear and tear or for issues not caused by tenants.
This settlement marks a significant action by the FTC to address unfair practices in the rental market, particularly as complaints against corporate landlords continue to rise.
Sep. 25 / Benzinga / Highlights the FTC's significant settlement with Invitation Homes, detailing deceptive practices and unfair fees. Provides a thorough overview and emphasizes the implications for renters, making it a valuable resource. “ 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 / Highlights the FTC's settlement with Invitation Homes, detailing deceptive practices and unfair fees. It effectively captures the implications for renters and quotes authoritative figures, enhancing its credibility. “ 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 / Highlights the FTC's settlement with Invitation Homes, detailing exploitative practices and unfair fees. It effectively captures the implications for renters, quoting authoritative figures and providing a thorough overview. “ 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 / Offers a comprehensive overview of the FTC's settlement with Invitation Homes, detailing deceptive practices and unfair fees. It effectively highlights the implications for renters and includes authoritative quotes, enhancing credibility. “ 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...
Federal Trade Commission announces action, settlement with Invitation Homes
Sep. 24 / The Business Journals / Offers a clear overview of the FTC's settlement with Invitation Homes, detailing deceptive practices and their implications for renters. It effectively summarizes key allegations and highlights the significance of the settlement. “ A major player in the single-family home rental market in Sacramento and nationwide would pay $48 million in a proposed settlement with the Federal Trade...
Sep. 24 / Business Insider / Provides a comprehensive overview of the FTC's allegations against Invitation Homes, emphasizing deceptive practices and the implications for renters. Highlights the company's previous legal issues, adding depth to the narrative. “ 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...
Landlord with thousands of NC homes sued by feds. Here’s how much renters could get back
Sep. 24 / Yahoo! News / Highlights the FTC's lawsuit against Invitation Homes, detailing deceptive fees and unfair eviction practices. It provides specific examples and context, enhancing understanding of corporate landlord issues during the pandemic. “ Invitation Homes, a national landlord with , faces a federal lawsuit with undisclosed fees, withheld security deposits and practiced unfair eviction...