Invitation Homes makes $48 million deal to settle with FTC 

Major single-family home rental company Invitation Homes has agreed to a proposed settlement with the Federal Trade Commission over concerns about its business practices, including issues relating to the capture of security deposits, poor housing conditions, and illegal evictions, the company and FTC announced this week. 

The Dallas-based company has agreed to pay $48 million, which the FTC said will be refunded to consumers and renters who had been affected by Invitation Homes.

What the FTC alleged: In its announcement, the FTC said that Invitation Homes routinely deceived renters and tenants on the real costs of housing by adding mandatory, non-refundable "junk fees" related to applications and services. Additionally, the FTC accused Invitation Homes of "deceptive and unfair" withholding of security deposits at the completion of a lease term, returning only 40% of consumers' total security deposits compared to the national average of 64% between 2020 and 2022. 

The FTC also said that during the pandemic, Invitation Homes "intentionally steered its renters away from filing the CDC declaration required to prevent renters from being evicted" to its own hardship application that did not offer eviction protections to tenants. 

What the FTC's leader said: "Invitation Homes, the nation's largest single-family home landlord, preyed on tenants through a variety of unfair and deceptive tactics," FTC Chair Lina M. Khan said in the announcement. "No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords. The FTC will continue to use all our tools to protect renters from unlawful business practices."

What Invitation Homes said: In a statement, Invitation Homes said that the settlement was not an admission of guilt or wrongdoing and that it will strive to serve its residents.

"Invitation Homes believes that its disclosures and practices are industry leading, both among its professional peers as well as the millions of smaller owners of single-family homes for lease," the company said in the announcement. "Invitation Homes remains committed to providing a high-quality living experience for individuals and families who want flexibility and choice in housing and to transparency with all stakeholders."

What changes Invitation Homes has to make: In addition to paying a multimillion dollar fee, the settlement also includes a number of new changes that Invitation Homes will have to institute, including transparency about the real costs to apply for and rent housing and no longer charging tenants' security deposits for normal wear and tear to properties. The company will also have to notify renters of local, state and national eviction laws and programs and can no longer conduct eviction procedures against people who have already moved out and notified Invitation Homes of their departure.