Invitation Homes Agrees to Pay $48 Million to Settle Claims It Charged Hidden Fees to Renters

The nation’s largest owner of single-family rental homes has agreed to pay $48 million to settle Federal Trade Commission complaints that it reaped millions of dollars through deceptive business practices, including requiring tenants to pay undisclosed fees on top of their monthly rent.

Under the terms of the proposed settlement, Invitation Homes also agreed to ensure that it clearly discloses its rental prices, establish procedures to fairly handle refunds of tenant security deposits and cease other illegal practices, the FTC said Tuesday.

In the complaint filed in federal court in Atlanta, the FTC claims the Dallas-based company used “deceptive advertising and unfair practices” to charge millions of dollars in bogus fees that harmed tens of thousands of people.

These mandatory fees, charged for internet packages, air filter delivery and other services, were not disclosed in Invitation Homes’ advertised monthly rental rates, the FTC says.

In total, the company charged consumers tens of millions of dollars in waste fees as part of their monthly rental payments between 2021 and June 2023, the FTC alleges.

The agency also claims that Invitation Homes “systematically withheld” tenants’ security deposits after they moved out, unfairly charged them for normal wear and tear, and used “unfair eviction practices,” including initiating eviction proceedings against tenants who had already moved out.

Funds from the settlement, which must still be approved by a federal judge, will be used to reimburse customers.

In a statement, Invitation Homes touted its disclosures and practices and noted that the proposed settlement “contains no admission of wrongdoing.”

As of June 30, the company owned or managed more than 109,000 homes in the United States.

Shares of Invitation Homes Inc. fell 2.6% Tuesday.