Invitation Homes has agreed to a proposed settlement order that would require the company to pay $48 million to be used to refund consumers the FTC alleges were harmed by its actions. The allegations included deceiving renters about lease costs by charging mandatory undisclosed fees, failing to inspect homes before residents moved in despite claiming to do so in their marketing literature, and unfairly withholding tenants’ security deposits when they moved out.
The settlement, which must be approved by a federal judge before it can go into effect, would also require Invitation Homes to destroy consumer financial data it collected prior to the settlement except under certain conditions, including if that information is needed for current renters.
While Invitation Homes agreed to the settlement, they made no admission of wrongdoing.
FTC chairwoman Lina Khan said, “Invitation Homes, the nation’s largest single-family home landlord, preyed on tenants through a variety of unfair and deceptive tactics, from saddling people with hidden fees and unjustly withholding security deposits to misleading people about eviction policies during the pandemic and even pursuing eviction proceedings after people had moved out. No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords. The FTC will continue to use all our tools to protect renters from unlawful business practices.”
Invitation Home released a statement announcing the settlement which said, in part, “Invitation Homes believes that its disclosures and practices are industry leading, both among its professional peers as well as the millions of smaller owners of single-family homes for lease. Today’s agreement brings the FTC’s three-year investigation to a close and puts this matter behind the Company, which will, as always, move forward with its continuous efforts to better serve its customers and enhance its practices. Invitation Homes remains committed to providing a high-quality living experience for individuals and families who want flexibility and choice in housing and to transparency with all stakeholders.”
