The FTC is sending $47M to renters who were overcharged by landlords. What triggered the payout, and how to spot red flags before signing a lease

Eligible consumers must have paid at least $45 in covered fees between January 2021 and September 2024 and not already received a refund from the company. Renters have 90 days to cash the checks, according to the agency.

Based on the total payout, the average refund works out to roughly $106 per renter, though individual payments may vary depending on the fees paid.

The case highlights a broader crackdown on hidden costs in the rental market and offers lessons for both tenants and landlords.

How hidden fees allegedly inflated the true cost of rent

In a lawsuit filed in 2024, the FTC accused Invitation Homes of misleading renters about the true cost of leasing a property. The agency said the company advertised homes with monthly rents that excluded mandatory add-on charges, leaving many tenants unaware of the real price until later in the application or leasing process.

According to the FTC, those additional charges included services such as “smart home technology,” “utility management” and "air-filter delivery" (2) — fees renters could not allegedly opt out of. USA Today notes the agency said these add-ons could add as much as $1,700 per year to the cost of renting a home (3).

The complaint also alleged that the company engaged in other practices that harmed renters, including failing to inspect homes before move-in, charging tenants for damage that existed before they arrived and billing for normal wear and tear after they moved out.

Between 2020 and 2022, Invitation Homes returned only 39.2% of security-deposit dollars to renters, whereas the national average was 63.9%, according to USA Today.

As part of the settlement, the company agreed to pay $48 million in consumer redress, disclose leasing prices more clearly and adopt new procedures for handling security-deposit refunds fairly, according to the FTC.

The agency has said that practices that obscure the true price of housing can distort competition and make it harder for consumers to compare rental options.

Why this case could reshape rental fees

The Invitation Homes settlement isn’t an isolated case. Federal regulators have increasingly targeted so-called “junk fees” in rental housing.

In 2025, regulators also reached a settlement with Greystar Real Estate Partners, the largest apartment manager in the U.S., over similar allegations. That case resulted in $23 million in consumer redress and new requirements around fee disclosure, according to the FTC (4).

And the crackdown has extended to the technology behind rental pricing.

In December 2025, the FTC sent letters to 13 property-management software companies, explaining that tools used by landlords could enable hidden or misleading rental fees that obscure the true cost of housing. The warning said they could be subject to legal action and fines, as suppliers of that technology (5).

Now the agency is considering even broader action.

The day after it announced the Invitation Homes payouts, the FTC said it's seeking public comment on a proposed rule that would address hidden or misleading rental fees nationwide.

The proposal would examine whether landlords should be required to clearly disclose the full cost of renting upfront, including all mandatory charges, so consumers can compare housing options more easily.

If adopted, such a rule could allow the agency to pursue civil penalties and refunds more easily when landlords obscure the true cost of rent.

What renters should watch for before signing a lease

For renters, the cases point to several warning signs worth looking for before signing a lease:

• Mandatory fees not included in advertised rent. If the listed rent suddenly rises once application paperwork begins, ask for a full breakdown of required charges.
• Vague or recurring service charges. Fees for technology packages, utility management or maintenance services should be clearly explained and itemized.
• Security-deposit policies. Renters should understand exactly how deposits are handled and what deductions are allowed.
• Move-out charges. Landlords should distinguish between legitimate damage and normal wear and tear.

If a landlord cannot clearly explain these costs in advance, that could signal a problem.