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 essential allegations made by the FTC was that Invitation Houses deceived tenants over the overall value of renting considered one of its houses.
The corporate, which owns or manages greater than 100,000 houses nationwide, together with greater than 11,000 in California, didn’t embrace necessary “junk” charges when promoting its rental charges, in line with the FTC.
These charges — for issues equivalent to good house expertise and utility administration — at occasions raised the price of hire by greater than $1,700 a yr and had been disclosed solely when shoppers went to signal their lease, the FTC alleged.
By that point, the company mentioned shoppers had been in a bind as a result of that they had already paid a nonrefundable software charge of as much as $55. In addition they could have forked over $500 to order a selected house, which they might get again provided that they signed the lease.
Typically, shoppers weren’t made conscious of the junk charges till after they signed the lease and moved in, authorities mentioned.
Along with junk charges, the FTC alleged Invitation Houses rented out houses that had been usually in disrepair and systematically withheld safety deposits for objects that weren’t the tenant’s accountability.
Invitation Houses additionally engaged in a number of unfair eviction practices, the company mentioned. Amongst them, the corporate instructed struggling tenants throughout the pandemic that their solely choices had been to pay, transfer out or face eviction and failed to tell them of federal eviction protections obtainable on the time, the FTC alleged.
“No American ought to pay extra for hire or be kicked out of their house due to unlawful techniques by company landlords,” FTC Chair Lina Khan mentioned 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 mentioned it made no admission of wrongdoing as a part of the settlement and described its disclosures and practices as “trade main.”
“At present’s settlement brings the FTC’s three-year investigation to an in depth and places this matter behind the Firm, which can, as at all times, transfer ahead with its steady efforts to higher serve its prospects and improve its practices,” Invitation Houses mentioned 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 that it made unpermitted renovations throughout its portfolio in California. In January, it agreed to pay a number of million to settle allegations that it violated the state’s hire cap regulation.
Below the settlement introduced Tuesday, which nonetheless have to be permitted by a choose, shoppers would obtain refunds and Invitation Houses will likely be required to incorporate all necessary month-to-month charges in its marketed hire.
