ATLANTA — The Federal Trade Commission announced that the home rental company Invitation Homes must pay nearly $50 million and make changes to its business practices after years of allegedly taking advantage of renters.
The FTC investigated Invitation Homes following numerous complaints from renters about wrongful evictions, withheld security deposits, and ignored maintenance requests.
“People would move in and see the unit in serious disrepair,” said FTC official Douglas Farrar.
The FTC accused Invitation Homes, one of the biggest corporate-owned home rental companies in the nation with over 12,000 rentals in Atlanta, of misleading renters about lease costs, charging undisclosed junk fees, failing to inspect homes before residents moved in, and unfairly withholding tenants’ security deposits.
“Invitation Homes was withholding more than 60% of security deposits,” Farrar added.
Renter Tara Anderson told Channel 2 investigative reporter Ashli Lincoln earlier this year that her security deposit had not been returned after she was forced to move out of her Sugar Hill rental due to mold issues.
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“Our house became unlivable,” Anderson said.
Anderson’s husband had to have his leg amputated after doctors found multiple bacterial infections in his bloodstream, which they attribute to the mold in their home.
“When they said we’re going to have to take your whole leg off, that broke my heart,” Alvin Anderson said.
For at least four years, Channel 2 Action News has reported on renters who claimed they experienced junk fees, wrongful evictions, and other unlawful practices from Invitation Homes.
Invitation Homes responded to the settlement, saying:
“Invitation Homes Inc. has reached an agreement with the Federal Trade Commission resolving the FTC’s civil investigation into certain company business practices. As part of the resolution, Invitation Homes will pay the FTC $48 million in monetary relief, with no civil penalties. The agreement contains no admission of wrongdoing by Invitation Homes.
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. 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 and enhance its practices. 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.”
“These sorts of illegal business practices come not only with a penalty to their reputation but also a financial penalty,” Farrar said.
The settlement, which must be approved by a federal judge before it goes into effect, will include requirements for Invitation Homes to include all monthly fees in rental advertisements and prohibits them from withholding security deposits.
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