Invitation Homes Agrees to Pay $48 Million in Settlement with FTC
Invitation Homes, the largest owner of U.S. single-family rental homes, has reached a settlement with the Federal Trade Commission (FTC) to pay $48 million to consumers and make changes to its practices. The agreement, announced Tuesday, addresses allegations of deceptive practices by Invitation Homes.
The FTC found that Invitation Homes advertised monthly rent prices without disclosing mandatory “junk fees,” allowed renters to move into homes in disrepair, withheld security deposits, and engaged in unfair eviction practices. This action marks the first enforcement by an FTC task force established earlier this year to address unfair practices in the rental housing market.
FTC Chair Lina M. Khan stated, “No American should pay more for rent or face eviction due to illegal tactics by corporate landlords. The FTC will continue to protect renters from unlawful business practices.”
In response, Invitation Homes stated that while it is paying monetary relief as part of the settlement, it is not admitting to any wrongdoing. The company emphasized its commitment to customer service and industry-leading practices.
The FTC alleges that Invitation Homes concealed fees related to smart-home technology, air filters, and internet packages, adding significant costs to renters. Additionally, the company failed to deliver on promised quality assurance inspections and emergency maintenance for residents in over 33,000 homes.
Furthermore, the FTC claims that Invitation Homes unfairly withheld security deposits for normal wear-and-tear damages and discouraged tenants from filing CDC-required declarations to prevent eviction during the COVID-19 pandemic.
Under the proposed settlement, Invitation Homes is required to disclose all fees upfront and handle security deposit refunds fairly. The agreement is subject to approval by a federal judge before taking effect.
Editor’s note: This article has been updated with a statement from Invitation Homes.
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