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Dallas-based Invitation Homes settles with FTC over undisclosed fees and improper evictions

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Dallas-based Invitation Homes has agreed to pay $48 million for engaging in deceptive practices and using unfair eviction tactics against its renters

Dallas, Texas – In a landmark settlement, Dallas-based Invitation Homes has agreed to pay $48 million for engaging in deceptive practices and using unfair eviction tactics against its renters. This announcement was made by the Federal Trade Commission (FTC) on Tuesday, marking a significant victory for tenants and a warning shot to landlords nationwide.

The settlement stems from a three-year investigation by the FTC into Invitation Homes, the largest single-family rental landlord in the United States, which owns over 80,000 properties across the country, including nearly 3,000 in North Texas. The company’s practices came under scrutiny for what the FTC described as “unlawful behavior” towards renters.

Dallas-based Invitation Homes has agreed to pay $48 million for engaging in deceptive practices and using unfair eviction tactics against its renters

According to the FTC, Invitation Homes levied undisclosed fees on tenants, which included nonrefundable application fees, “utility management” fees, and “smart home” fees. These fees were not made clear upfront, which the FTC has labeled an illegal business practice. Additionally, the company was criticized for its poor maintenance and inspection standards. Tenants often moved into homes that were in severe disrepair, with issues ranging from exposed wiring and mold to broken appliances, contradicting the company’s promises of homes being move-in ready.

The company also falsely promised 24/7 service to its tenants, a claim that fell short when some residents experienced interrupted services that were not restored for extended periods. Furthermore, Invitation Homes was found to have improperly withheld security deposits and evicted tenants by circumventing eviction protections.

As part of the settlement, which still requires approval from a federal judge, Invitation Homes is prohibited from deceiving tenants and must disclose certain fees and eviction protection programs to its customers. The FTC has warned that it will continue to monitor the company to ensure compliance with the agreement.

In a public statement, Invitation Homes defended its practices, claiming that their disclosures and practices are industry-leading. However, the company expressed its agreement to the settlement to conclude the prolonged FTC investigation.

This enforcement action is the first by the FTC’s Renter’s Working Group, which was established earlier this year to target unfair and deceptive practices in the rental housing market. The group aims to enhance protections for renters, especially those dealing with large corporate landlords.

The FTC’s action against Invitation Homes is one the agency hopes will send a signal to the market —especially rental homes owned by corporate landlords — that illegal practices have serious penalties.

The FTC also encouraged renters who continue to face deceptive practices from Invitation Homes to report these issues, which could lead to further penalties under the terms of the settlement agreement. This action by the FTC represents a critical step in addressing the challenges renters face and underscores the agency’s commitment to upholding tenant rights and corporate accountability.

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