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 principal allegations made by the FTC was that Invitation Properties deceived tenants over the entire price of renting one in all its properties.
The corporate, which owns or manages greater than 100,000 properties nationwide, together with greater than 11,000 in California, didn’t embody obligatory “junk” charges when promoting its rental charges, in keeping with the FTC.
These charges — for issues corresponding to sensible residence expertise and utility administration — at instances raised the price of hire by greater than $1,700 a yr and had been disclosed solely when customers went to signal their lease, the FTC alleged.
By that point, the company stated customers had been in a bind as a result of they’d already paid a nonrefundable software price of as much as $55. In addition they could have forked over $500 to order a selected residence, which they’d get again provided that they signed the lease.
Typically, customers weren’t made conscious of the junk charges till after they signed the lease and moved in, authorities stated.
Along with junk charges, the FTC alleged Invitation Properties rented out properties that had been typically in disrepair and systematically withheld safety deposits for objects that weren’t the tenant’s duty.
Invitation Properties additionally engaged in a number of unfair eviction practices, the company stated. Amongst them, the corporate instructed struggling tenants throughout the pandemic that their solely choices had been to pay, transfer out or face eviction and failed to tell them of federal eviction protections out there on the time, the FTC alleged.
“No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords,” FTC Chair Lina Khan stated in a press release. “The FTC will continue to use all our tools to protect renters from unlawful business practices.”
“Today’s agreement brings the FTC’s three-year investigation to a close and puts this matter behind the Company, which will, as always, move forward with its continuous efforts to better serve its customers and enhance its practices,” Invitation Properties stated in a press release.
The corporate, which began shopping for hundreds of properties 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 hire cap legislation.
Beneath the settlement introduced Tuesday, which nonetheless should be accepted by a choose, customers would obtain refunds and Invitation Properties can be required to incorporate all obligatory month-to-month charges in its marketed hire.
