In a significant ruling, Invitation Homes, the largest landlord of single-family homes in the United States, has agreed to pay $48 million to settle allegations made by the Federal Trade Commission (FTC). This settlement arises from claims that the company misled renters about lease costs by imposing undisclosed fees between 2021 and 2023.
The FTC’s investigation revealed that Invitation Homes charged various fees, including costs for air filter delivery, smart home technology, and utility management, without clearly communicating these charges during the rental application process. This lack of transparency left many renters unaware of the true cost of their leases.
According to the FTC, renters were “harmed by its actions,” which included deceptive practices like not inspecting homes prior to residents moving in and unfairly withholding tenants’ security deposits upon move-out. The settlement mandates that Invitation Homes take immediate steps to enhance transparency and fairness in its operations. This includes clearly disclosing leasing prices, establishing fair policies for handling security deposit refunds, and ceasing any other unlawful behaviors.
FTC Chair Lina M. Khan expressed strong disapproval of the tactics employed by Invitation Homes, stating, “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.”
This landmark settlement serves as a vital reminder of the importance of transparency in rental agreements and the need for renters to be vigilant about undisclosed fees. It underscores the ongoing efforts to ensure fairness in the housing market, paving the way for a more equitable rental landscape for all.