Invitation Houses, the nation’s largest single-family landlord, has agreed to pay $48 million to settle a handful of allegations, together with that it illegally charged undisclosed junk charges, withheld tenant safety deposits and engaged in unfair eviction practices.
The settlement was introduced Tuesday by the Federal Commerce Fee. Among the many primary allegations made by the FTC was Invitation Houses deceived tenants over the full value of renting one among its houses.
The corporate, which owns or manages greater than 100,000 houses nationwide, together with greater than 11,000 in California, didn’t embody obligatory “junk” charges when promoting its rental charges, in line with the FTC.
These charges — for issues like sensible house expertise and utility administration — at instances raised the price of lease by greater than $1,700 a yr and have been solely disclosed when customers went to signal their lease, the FTC alleged.
By that point, the company stated customers have been in a bind as a result of they’d already paid a nonrefundable utility payment of as much as $55. They could have additionally forked over $500 to order a selected house, which they’d solely get again in the event that they signed the lease.
Generally, customers weren’t made conscious of the junk charges till after they signed the lease and moved in, authorities stated.
Along with junk charges, the FTC alleged Invitation Houses rented out houses that have been typically in disrepair and systematically withheld safety deposits for gadgets that weren’t the tenant’s duty.
Invitation Houses additionally engaged in a number of unfair eviction practices, the company stated. Amongst them, the corporate advised struggling tenants throughout the pandemic that their solely choices have been to pay, transfer out or face eviction and failed to tell them of federal eviction protections accessible on the time, the FTC alleged.
“No American ought to pay extra for lease or be kicked out of their house due to unlawful ways by company landlords,” Federal Commerce Fee Chair Lina M. Khan stated in an announcement. “The FTC will proceed to make use of all our instruments to guard renters from illegal enterprise practices.”
In a information launch, Invitation Houses stated it made no admission of wrongdoing as a part of the settlement and described its disclosures and practices as “trade main.”
“At this time’s settlement brings the FTC’s three-year investigation to an in depth and places this matter behind the Firm, which can, as all the time, transfer ahead with its steady efforts to higher serve its clients and improve its practices,” Invitation Houses stated in an announcement.
The corporate, which began shopping for 1000’s of houses within the wake of the Nice Recession, has reached a number of settlements this yr.
In July, it agreed to pay practically $20 million to resolve allegations it made unpermitted renovations throughout its portfolio in California. In January, it agreed to pay a number of million to settle allegations it violated the state’s lease cap regulation.
Beneath the settlement introduced Tuesday, which nonetheless should be authorized by a choose, customers would obtain refunds and Invitation Houses shall be required to incorporate all obligatory month-to-month charges in its marketed lease.
