Invitation Homes, the largest landlord in the Carolinas, will pay $48 million to settle charges of exploitative practices, according to the Federal Trade Commission. The settlement addresses claims that the company unfairly evicted tenants, withheld security deposits, and charged excessive fees.
Invitation Homes currently has 244 homes for lease around the Charlotte area, ranging in price from $1,465 per month for a small 1,000 sq ft home in West Charlotte up to $3,140 for a 3,500 sq ft home in Huntersville.
The FTC alleged that Invitation Homes steered renters away from CDC eviction protections during the COVID-19 pandemic, withheld security deposits for normal wear and tear, and imposed over $18 million in unnecessary fees. The settlement mandates transparency about eviction aid and restricts deceptive fee practices.
“Invitation Homes, the nation’s largest single-family home landlord, preyed on tenants through a variety of unfair and deceptive tactics, from saddling people with hidden fees and unjustly withholding security deposits to misleading people about eviction policies during the pandemic and even pursuing eviction proceedings after people had moved out,” said FTC Chair Lina M. Khan in a press release. “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.”
The settlement bars Invitation Homes from using security deposits for damages related to normal wear and tear or pre-existing issues. The company must notify renters of federal, state, and local eviction assistance programs and is prohibited from filing evictions against renters who have vacated the premises and provided notice. Moreover, the settlement enforces measures to destroy financial data collected prior to the agreement, unless required for current tenants.
Moving forward, Invitation Homes must include all mandatory fees in rental price listings and notify renters about available aid programs. The court must approve the settlement before it goes into effect, ensuring compliance with these terms and providing restitution to affected tenants. This decision marks a significant step toward holding landlords accountable for exploitative practices.
