Invitation Homes Agrees to $48 Million Settlement Over Hidden Fees and Deceptive Practices

America’s largest owner of single-family rental homes, Invitation Homes, has reached a $48 million settlement with the Federal Trade Commission (FTC) regarding allegations of deceptive business practices. The FTC claims the company charged tenants undisclosed fees in addition to their monthly rent, generating millions in revenue through these practices.

As part of the proposed settlement, Invitation Homes has committed to clearly disclosing leasing prices, implementing fair procedures for security deposit refunds, and discontinuing other unlawful practices. The complaint, filed in federal court in Atlanta, accuses the Dallas-based firm of using “deceptive advertising and unfair practices” to impose bogus fees on tens of thousands of tenants.

The FTC alleges that the company charged significant junk fees for services like internet packages and air-filter deliveries, which were not included in the advertised rental rates. Between 2021 and June 2023, these fees reportedly totaled tens of millions of dollars.

The agency further claims that Invitation Homes “systematically withheld” security deposits from tenants after they vacated properties, unfairly charging for normal wear-and-tear, and engaged in “unfair eviction practices,” including initiating eviction proceedings against renters who had already moved out.

The settlement funds, pending approval by a federal judge, are intended for customer refunds. In its statement, Invitation Homes emphasized its commitment to transparency and noted that the settlement does not imply any admission of wrongdoing.

As of June 30, Invitation Homes owned or managed over 109,000 homes across the United States. Following the news, shares of Invitation Homes Inc. fell by 2.6%.