FTC plans $47M payout for renters allegedly misled by landlord giant

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More than 400,000 people will receive checks as part of a $47.2 million settlement against one of the country’s largest landlords, according to the Federal Trade Commission (FTC).

The FTC announced the settlement on Wednesday, March 11, saying payments would go to customers of the home rental company Invitation Homes. Called one of the largest landlords of single-family homes in the U.S. by the FTC, the company was accused of an “array of unlawful actions” in a September 2024 lawsuit lodged by the agency.

Invitation Homes engaged in deceptive behavior, alleged the suit, including misleading applicants about leasing costs, charging undisclosed fees for services like “smart home technology” and “utility management,” and unfairly withholding tenants’ security deposits. The company was also accused of fabricating unfair charges when renters moved out, resulting in consumers paying improper fees for normal wear-and-tear, damage that happened before move-in and renovations.

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Invitation Homes levied so many move-out charges, said the lawsuit, that it returned only 39.2% of consumers’ total security deposit dollars between 2020 and 2022, compared to the national average of 63.9%.

Some of the mandatory junk fees could total $1,700 a year per renter, alleged the suit, and prospective tenants also paid non-refundable reservation and application fees ranging from $55 up to $500. Application fees alone netted Invitation Homes $18 million between 2019 and 2024, said the FTC, which also accused the company of lying about pre-move-in inspections and leaving tenants to contend with “significant disrepair.”

As part of the settlement, Invitation Homes agreed to pay $48 million in compensation to affected renters. The company also had several rules imposed, including full disclosure of leasing prices and a new system for refunding security deposits “fairly.”

“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,” then-FTC Chair Lina M. Khan said in a September 2024 statement.

Who is eligible for payment in Invitation Homes settlement

The FTC will send checks to 444,131 affected consumers as part of the $47.2 million agreement.

To be eligible for a slice of the payout, consumers must:

• Have paid Invitation Homes $45 or more for covered fees or charges between January 2021 and September 2024.
• Have not already received a credit or refund from Invitation Homes.

Recipients should cash their checks within 90 days. Consumers who have questions about the settlement can contact the refund administrator, Rust Consulting, Inc., at (800) 804-6915 or by email at info@InvitationHomesRefund.com.