Invitation Homes Settles FTC Probe for $48 Million
In a landmark enforcement action, the Federal Trade Commission (FTC) has announced that Invitation Homes, the nation’s largest single-family landlord, will pay a $48 million settlement following allegations of deceptive practices and hidden junk fees. This case, stemming from the FTC’s newly formed Renters Working Group, underscores the importance of transparency and fairness in rental and real estate transactions. Invitation Homes owns or manages more than 100,000 homes in the U.S., making it the country’s largest single-family landlord. Between 2021 and 2023, the company collected tens of millions of dollars in junk fees as part of consumer rental payments, the FTC alleges.
Key Allegations Against Invitation Homes
The FTC complaint reveals widespread practices that misled renters and imposed unfair costs:
- Hidden Fees: Invitation Homes allegedly advertised rental prices that excluded mandatory junk fees, such as charges for smart-home technology and utility management. These fees added over $1,700 annually to renters’ costs.
- Non-Refundable Fees: Renters paid application and reservation fees, sometimes totaling up to $55, only to discover the true cost of the rental after signing a lease.
- Unfair Security Deposit Practices: The company reportedly withheld security deposits for normal wear-and-tear or pre-existing damages, returning just 39.2% of deposits between 2020 and 2022, well below the national average of 63.9%.
- Eviction Practices During COVID-19: Invitation Homes is accused of discouraging renters from using federal eviction protections and pursuing eviction proceedings even against those who had already vacated the property.
- The Settlement
As part of the agreement, Invitation Homes will refund $48 million to affected renters, cease deceptive pricing practices, improve fee transparency, and adopt fairer policies regarding security deposits and evictions.
The Role of Real Estate Attorneys in Preventing Deceptive Practices
Cases like this highlight the vital role of legal oversight in real estate transactions. At The Floyd Law Firm PC, we are dedicated to protecting our clients from similar pitfalls. Whether you’re buying, selling, or renting property, transparency and compliance with the law are paramount to a successful transaction.
Comprehensive Real Estate Legal Services
Serving Surfside Beach, Myrtle Beach, and communities throughout South Carolina since 1973, our firm offers expert guidance in all aspects of real estate law, including: residential and commercial real estate transactions, lease agreements and disputes, HOA challenges and resolutions.
Our attorneys bring more than 100 years of combined experience to every case, ensuring your real estate dealings are handled with care, precision, and integrity. We are committed to ensuring your real estate transactions are transparent, secure, and compliant with the law. Contact us today to see how our experienced attorneys can help safeguard your investment.
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