Dallas, Texas – Invitation Homes, the largest landlord of single-family homes in the country, has reached a proposed $48 million settlement following accusations of engaging in “unlawful actions against customers,” as announced by the Federal Trade Commission on Tuesday. The FTC alleges that Invitation Homes deceived renters about lease costs, charged undisclosed junk fees, failed to inspect homes prior to new residents moving in, and unfairly withheld security deposits.
According to FTC Chair Lina M. Khan, Invitation Homes preyed on tenants through various unfair and deceptive tactics, such as hidden fees and misleading eviction policies during the pandemic. The proposed settlement, still pending approval from a federal judge, requires Invitation Homes to clearly disclose leasing prices, establish fair security deposit return policies, and cease any unlawful behavior.
The FTC complaint highlights that Invitation Homes advertised monthly rental rates without including “mandatory junk fees” that could exceed $1,700 annually. Renters were hit with nonrefundable fees upon lease signing, only to discover the actual cost after the fact. These fees covered services like smart home technology, utility management, air filter delivery, and internet packages, with no opt-out options.
Furthermore, Invitation Homes allegedly neglected to conduct pre-move-in inspections and failed to deliver promised 24/7 emergency maintenance. Residents reported various issues upon moving in, from plumbing and electrical problems to mold, broken appliances, and rodent feces. The FTC further claims that the company unfairly charged for wear and tear present before tenants moved in, withholding a significant portion of security deposits.
Additionally, Invitation Homes faced allegations of unfair eviction practices, including steering renters away from CDC eviction protection declarations during the pandemic. The company’s actions led to eviction filings against individuals who had already vacated their homes, negatively impacting their ability to secure housing in the future.
As part of the settlement, Invitation Homes must now list all monthly fees in advertised rental prices, specify whether fees are mandatory, refrain from withholding security deposits for normal wear and tear, and provide information on eviction assistance programs. The FTC hopes the $48 million settlement will serve as a precedent for regulating institutional landlords and eliminating unjust fees in the housing market.