Invitation Properties, the nation’s largest single-family landlord, has agreed to pay $48 million to settle a handful of allegations, together with that it illegally charged undisclosed junk charges, withheld tenant safety deposits and engaged in unfair eviction practices.
The settlement was introduced Tuesday by the Federal Commerce Fee. Among the many major allegations made by the FTC was that Invitation Properties deceived tenants over the whole value of renting one among its houses.
The corporate, which owns or manages greater than 100,000 houses nationwide, together with greater than 11,000 in California, didn’t embody necessary “junk” charges when promoting its rental charges, based on the FTC.
These charges — for issues reminiscent of good residence know-how and utility administration — at occasions raised the price of lease by greater than $1,700 a yr and had been disclosed solely when shoppers went to signal their lease, the FTC alleged.
By that point, the company mentioned shoppers had been in a bind as a result of that they had already paid a nonrefundable utility price of as much as $55. In addition they might have forked over $500 to order a particular residence, which they might get again provided that they signed the lease.
Typically, shoppers weren’t made conscious of the junk charges till after they signed the lease and moved in, authorities mentioned.
Along with junk charges, the FTC alleged Invitation Properties rented out houses that had been typically in disrepair and systematically withheld safety deposits for gadgets that weren’t the tenant’s duty.
Invitation Properties additionally engaged in a number of unfair eviction practices, the company mentioned. Amongst them, the corporate advised struggling tenants through the pandemic that their solely choices had been to pay, transfer out or face eviction and failed to tell them of federal eviction protections accessible on the time, the FTC alleged.
“No American ought to pay extra for lease or be kicked out of their residence due to unlawful ways by company landlords,” FTC Chair Lina Khan mentioned in an announcement. “The FTC will proceed to make use of all our instruments to guard renters from illegal enterprise practices.”
In a information launch, Invitation Properties mentioned it made no admission of wrongdoing as a part of the settlement and described its disclosures and practices as “business main.”
“At this time’s settlement brings the FTC’s three-year investigation to an in depth and places this matter behind the Firm, which can, as at all times, transfer ahead with its steady efforts to raised serve its clients and improve its practices,” Invitation Properties mentioned in an announcement.
The corporate, which began shopping for hundreds of houses within the wake of the Nice Recession, has reached a number of settlements this yr.
In July, it agreed to pay practically $20 million to resolve allegations that it made unpermitted renovations throughout its portfolio in California. In January, it agreed to pay a number of million to settle allegations that it violated the state’s lease cap regulation.
Below the settlement introduced Tuesday, which nonetheless have to be accepted by a choose, shoppers would obtain refunds and Invitation Properties will likely be required to incorporate all necessary month-to-month charges in its marketed lease.
