Largest single-family home owner reaches $48 million FTC settlement

“Invitation Homes, the nation’s largest owner of single-family homes, preyed on renters through a variety of unfair and deceptive tactics, from ripping people off with hidden fees and wrongfully withholding security deposits to misleading people with regarding evacuation policies during the pandemic and even tracking evacuation procedures. after people moved,” FTC Chairwoman 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 in the U.S., failed to include mandatory junk fees — including booking fees of up to $500 — when it advertised monthly rental rates to prospective renters. Additionally, the complaint accused the company of failing to inspect and repair thousands of homes before tenants moved in, exposing new tenants to rodent feces, mold and exposed electrical wiring.

The FTC also accused Invitation Homes of improperly withholding security deposits from many tenants, removing tenants from federal eviction protections, and starting eviction proceedings against tenants who had already moved out of their homes .

Invitation Homes did not 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 unauthorized renovations to its California homes. The company allegedly made major renovations, including electrical and plumbing, and built pools without proper permits, according to a lawsuit filed by a San Diego business. The rental company denied the allegations.

Earlier this year, Invitation Homes also agreed to pay $3.7 million to settle rent measurement charges in California.