The nation’s largest owner of single-family homes for rent has agreed to pay $48 million to settle claims by the Federal Trade Commission that it reaped millions of dollars via deceptive business practices, including forcing tenants to pay undisclosed fees on top of their monthly rent.
Under the terms of the proposed settlement, Invitation Homes also agreed to ensure it is clearly disclosing its leasing prices, establish procedures to handle tenant security-deposit refunds fairly and cease other unlawful practices, the FTC said Tuesday.
In the complaint, filed in federal court in Atlanta, the FTC claims that the Dallas-based company used “deceptive advertising and unfair practices” to charge millions of dollars in bogus fees that harmed tens of thousands of people.
These mandatory fees, charged for internet packages, air-filter delivery and other services, were not disclosed in the monthly rental rates that Invitation Homes advertised, the FTC claims.
All told, the company charged consumers tens of millions of dollars in junk fees as part of their monthly rental payments between 2021 and June 2023, the FTC alleges.
The agency also claims that Invitation Homes “systematically withheld” tenants’ security deposits after they moved out, unfairly charging them for normal wear-and-tear, and used “unfair eviction practices,” including starting eviction proceedings against renters who had already moved out.
The funds from the settlement, which is subject to approval by a federal judge, would go toward customer refunds.
In a statement, Invitation Homes touted its disclosures and practices and noted that the proposed settlement “contains no admission of wrongdoing.”
As of June 30, the company owned or managed more than 109,000 homes across the U.S.
Shares in Invitation Homes Inc. Fell 2.6% Tuesday.