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More than 400,000 people will receive checks as part of a $47.2 million settlement against one of the nation’s largest landlords, according to the Federal Trade Commission (FTC).
The FTC announced the settlement on Wednesday, March 11, saying the payments would go to customers of home rental company Invitation Homes. The company, which the FTC calls one of the largest single-family home landlords in the U.S., was accused of “a series of illegal acts” in a lawsuit filed by the FTC in September 2024.
The lawsuit alleges Invitation Homes engaged in deceptive practices, including misleading applicants about lease costs, charging undisclosed fees for services such as “smart home technology” and “utility management,” and unfairly withholding tenants’ security deposits. The company was also accused of fabricating unreasonable fees for tenants to move out, resulting in consumers paying unreasonable fees for normal wear and tear, pre-occupancy damage and renovations.
According to the complaint, Invitation Homes is charging excessive exit fees, returning only 39.2% of the total security deposits returned to consumers between 2020 and 2022, compared to the national average of 63.9%.
Some of the mandatory junk fees could total $1,700 per year per renter, and prospective tenants also paid non-refundable reservation and application fees ranging from $55 to up to $500, according to the complaint. The FTC said application fees alone generated $18 million in profits for Invitation Homes between 2019 and 2024, and accused the company of lying about pre-occupancy inspections and forcing 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 was also subject to several rules, including full disclosure of lease prices and a new system for “fair” refunding of security deposits.
In a September 2024 statement, then-FTC Chair Lina M. Khan said, “No American should have their rent increased or forced from their home because of illegal tactics by a corporate landlord. The FTC will continue to use all of its tools to protect renters from illegal business practices.”
Who will receive the Invitation Homes settlement?
As part of the $47.2 million agreement, the FTC will send checks to 444,131 affected consumers.
To be eligible to receive a portion of the payment, a consumer must:
- Paid $45 or more in qualifying fees or charges to Invitation Homes from January 2021 to September 2024.
- I have not yet received a credit or refund from Invitation Homes.
The recipient must cash the check within 90 days. Consumers with questions about the settlement should contact the Refund Administrator, Rust Consulting, Inc. (800) 804-6915 or email info@InvitationHomesRefund.com.
