The FTC is sending over $47.2 million in refunds to hundreds of thousands of renters who say Invitation Homes hit them with hidden fees and other illegal practices. Invitation Homes is the country's biggest single-family home landlord.
Corporate Landlord Accused of Deception
The FTC sued Invitation Homes in September 2024, accusing the Dallas company of deceiving and cheating renters in multiple ways. The company, which owns or manages over 100,000 homes across the U.S., allegedly charged tens of millions of dollars in so-called "junk fees" between January 2021 and September 2024.
Renters had to pay these mandatory monthly fees—for things like smart-home tech and air filter delivery—that totaled as much as $1,700 a year. Renters often didn't find out about these extra costs until they got their lease—or sometimes not until after they'd already signed it.
FTC Chair Lina Khan made the agency's position clear. "No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords," Khan said in a statement. This move fits with the Biden administration's broader effort to crack down on hidden fees in airlines, event ticketing, and other industries.
Promises Versus Reality: Substandard Conditions and Withheld Deposits
But the hidden fees weren't the only problem. The FTC also alleged other serious violations. Invitation Homes marketed a "worry-free leasing lifestyle," promising pre-inspected homes before move-in and round-the-clock maintenance. But new residents often encountered significant problems.
FTC senior attorney Larissa Bungo pointed out some of the problems renters faced. Tenants faced "sewage backup, broken appliances and visible rodent feces" upon moving into their supposedly pre-inspected homes. The company also allegedly made deceptive claims about the overall condition of its rental properties.
Invitation Homes also illegally kept tenants' security deposits when they moved out. The company kept deposits without good reason—charging renters for normal wear and tear, pre-existing damage, and even renovations. The company also didn't tell tenants about federal eviction protections during the pandemic.
Settlement Requires Changes and Denials of Wrongdoing
To settle the FTC's case, Invitation Homes agreed to pay $48 million to affected renters. The settlement also forces the company to change how it does business. Going forward, Invitation Homes has to clearly show all fees in its rental ads.
The company can't keep security deposits for problems renters didn't cause. It has to set up clear rules for returning deposits fairly and stop the illegal practices.
Even with the settlement, Invitation Homes—a publicly traded company worth about $22 billion—says it didn't do anything wrong. "Today's agreement brings the FTC's three-year investigation to a close and puts this matter behind the company, which will, as always, move forward with its continuous efforts to better serve its customers," Invitation Homes stated.
Who is Eligible and How to Get a Refund
The FTC is sending checks to 444,131 eligible consumers. To qualify for a payment, individuals must have paid Invitation Homes $45 or more for covered fees or charges between January 2021 and September 2024. Those who have already received a credit or refund directly from Invitation Homes are not eligible for an FTC payment.
This is the FTC's first enforcement action since it created a task force to look at unfair and deceptive practices against renters. The FTC's focus on big landlords shows it's serious about protecting renters from predatory behavior.
Renters need to cash their checks within 90 days—the deadline's on the check itself. The FTC warns: it never asks for money or bank details to send a refund. If someone does, it's a scam.
Questions? Call Rust Consulting at 800-804-6915 or email [email protected].
