Single-family landlord Invitation Homes misled consumers over cost of a home, the FTC alleges
Invitation Homes Settles Allegations for $48 Million
Invitation Homes, the largest single-family landlord in the United States, has agreed to a $48 million settlement to resolve several allegations, including the illegal imposition of undisclosed fees, improper withholding of tenant security deposits, and unfair eviction practices. The Federal Trade Commission (FTC) announced the settlement, highlighting that Invitation Homes misled tenants about the total cost of renting its properties. The company, which manages over 100,000 homes nationwide, including more than 11,000 in California, failed to disclose mandatory fees for services such as smart home technology and utility management in its advertised rental rates. These fees could increase annual rent by over $1,700 and were often revealed only when tenants were about to sign their leases, after having already paid nonrefundable application fees and reservation deposits.
The FTC also accused Invitation Homes of renting out properties in disrepair and systematically withholding security deposits for damages not caused by tenants. Additionally, during the COVID-19 pandemic, the company allegedly told struggling tenants that their only options were to pay, move out, or face eviction, without informing them of federal eviction protections available at the time. FTC Chair Lina Khan emphasized that no American should face higher rent or eviction due to illegal tactics by corporate landlords and vowed to continue protecting renters from such practices.
Invitation Homes, in a news release, denied any wrongdoing and described its practices as industry-leading. The company stated that the settlement concludes a three-year FTC investigation and allows it to focus on improving customer service and practices. This settlement follows other recent agreements by Invitation Homes, including a nearly $20 million settlement in July for unpermitted renovations in California and a multi-million dollar settlement in January for violating the state's rent cap law.
Under the new settlement, which requires judicial approval, consumers will receive refunds, and Invitation Homes must include all mandatory monthly fees in its advertised rental rates.
Related Settlements and Legal Actions
Other recent legal actions in the housing sector include a class-action settlement by the AIDS Healthcare Foundation over poor living conditions, a legal settlement announced by Governor Newsom regarding Elk Grove's opposition to homeless housing, and a nearly $40 million payment by Los Angeles for allegedly misusing federal housing grants.
