The Federal Trade Commission (FTC) has reached a settlement agreement with the nation's largest owner of single-family homes for rent, requiring them to pay $48 million to resolve claims of deceptive business practices. The company, based in Dallas, was accused of imposing undisclosed fees on tenants in addition to their monthly rent.
As part of the settlement, Invitation Homes has agreed to clearly disclose leasing prices, establish fair procedures for handling security-deposit refunds, and cease engaging in other unlawful practices. The FTC filed a complaint in federal court in Atlanta, alleging that the company used deceptive advertising and unfair practices to charge tenants millions of dollars in undisclosed fees for services like internet packages and air-filter delivery.
These hidden fees were not included in the advertised monthly rental rates, resulting in consumers paying tens of millions of dollars in extra charges between 2021 and June 2023. The FTC also accused Invitation Homes of unfairly withholding security deposits, charging tenants for normal wear-and-tear, and engaging in unfair eviction practices.
The settlement funds, subject to approval by a federal judge, will be used for customer refunds. Invitation Homes emphasized that the proposed settlement does not constitute an admission of wrongdoing. The company, which owns or manages over 109,000 homes across the U.S., saw its shares decline by 2.6% following the announcement.
