In a significant financial settlement, Invitation Homes, the largest single-family home rental company in the country, has agreed to pay $48 million to resolve allegations of deceptive business practices made by the Federal Trade Commission (FTC). The FTC accused the Dallas-based company of imposing millions of dollars in undisclosed fees on tenants. According to a news release from the FTC cited by News 3 LV, these fees included charges for internet packages and air-filter delivery services, which were not included in the advertised monthly rental rates.
The FTC claims the company amassed tens of millions of dollars in junk fees from tenants, in addition to systemically withholding security deposits by charging renters for normal wear-and-tear. The FTC also alleges the company utilized "unfair eviction practices," including initiating proceedings against individuals who had already vacated their rentals, as detailed in a statement obtained by News 3 LV. The settlement, pending a federal judge's approval, will funnel the funds towards customer refunds.
In a response to the settlement, Invitation Homes said it "contains no admission of wrongdoing," yet the company has agreed to several reforms. These include a commitment to clear disclosure of leasing prices, as well as the establishment of fair procedures for handling security deposit refunds, as per the News 3 LV.
U.S. Rep. Susie Lee (D-Nevada) criticized Invitation Homes for mistreating 3,500 families in southern Nevada. U.S. Rep. Dina Titus (D-Nev.) also commented that the FTC's actions address deceptive rental practices in Southern Nevada, which have contributed to rising rental costs, according to 8 News Now. The FTC's measures aim to correct past issues and prevent future exploitation of tenants.
As of June 30, Invitation Homes was at the helm of over 109,000 homes across the United States, with approximately 3,500 in Clark County. The settlement not only seeks to rectify the immediate issues at hand but also puts in place a framework that intends to prevent similar incidents from happening in the future.
