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 fundamental allegations made by the FTC was Invitation Properties deceived tenants over the full value of renting one in every of 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 necessary “junk” charges when promoting its rental charges, based on the FTC.
These charges — for issues like good dwelling know-how and utility administration — at occasions raised the price of lease by greater than $1,700 a yr and had been solely disclosed when customers went to signal their lease, the FTC alleged.
By that point, the company mentioned customers had been in a bind as a result of they’d already paid a nonrefundable utility payment of as much as $55. They could have additionally forked over $500 to order a selected dwelling, which they’d solely get again in the event that they signed the lease.
Generally, customers 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 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 mentioned. Amongst them, the corporate advised struggling tenants in the course of 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 dwelling due to unlawful ways by company landlords,” Federal Commerce Fee Chair Lina M. Khan mentioned in a press release. “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 “trade main.”
“At the moment’s settlement brings the FTC’s three-year investigation to a detailed and places this matter behind the Firm, which is able to, as at all times, transfer ahead with its steady efforts to higher serve its clients and improve its practices,” Invitation Properties mentioned 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 it made unpermitted renovations throughout its portfolio in California. In January, it agreed to pay a number of million to settle allegations it violated the state’s lease cap regulation.
Underneath the settlement introduced Tuesday, which nonetheless have to be permitted by a decide, customers would obtain refunds and Invitation Properties shall be required to incorporate all necessary month-to-month charges in its marketed lease.
