The country’s largest single-family home rental company is poised to pay more than $48 million as part of a proposed settlement with the Federal Trade Commission over allegations that it deceived and overcharged consumers.
The FTC accused the company, Invitation Homes, of a range of illegal practices that took advantage of its tenants, including “deceiving renters about lease costs, charging undisclosed junk fees, failing to inspect homes before residents moved in, and unfairly withholding tenants’ security deposits when they moved out,” according to an agency press release on Tuesday.
“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,” FTC Chair Lina Khan said in a statement.
To be finalized, the settlement must be approved by a federal judge.
The FTC alleged that Invitation Homes, which owns 84,000 properties across the US, didn’t include mandatory junk fees — including reservation fees of up to $500 — when advertising monthly rental rates to prospective tenants. The complaint further accused the company of failing to inspect and repair thousands of its homes before tenants moved in, exposing new renters to rodent feces, mold, and exposed electrical wiring.
The FTC also accused Invitation Homes of improperly withholding many tenants’ security deposits, directing tenants away from federal eviction protections, and starting eviction proceedings against tenants who had already moved out of their homes.
Invitation Homes didn’t immediately respond to Business Insider’s request for comment.
This comes after Invitation Homes agreed to pay a total of $20 million over allegations that it made unpermitted renovations on its homes in California. The company allegedly made major renovations, including to electrical and plumbing systems, and built swimming pools without the proper permits, according to a lawsuit brought by a San Diego business. The rental company denied the allegations.
Earlier this year, Invitation Homes also agreed to pay $3.7 million to resolve charges of rent gauging in California.
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