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Company netted millions from fee practices

The complaint filed by the FTC alleges that Invitation Homes advertised rental rates that failed to mention fees like smart home tech, utility management, air filter delivery, and internet packages.

Renters were not allowed to opt out of the fees and, in some cases, weren’t informed of these fees until after they’d signed a lease. The FTC reports these junk fees amounted to more than $1,700 a year for some tenants, which the agency alleges netted Invitation Homes tens of millions of dollars between 2021 and 2023. One email the release cited in the complaint “called on the senior vice president responsible for overseeing the company’s fee program to ‘juice this hog’ by making the smart home fee mandatory for renters.”

Invitation Homes also promised 24/7 emergency maintenance and home inspections, which were not provided, according to the report. Between 2018 and 2023, residents in 33,328 properties submitted at least one work order in the first week of moving into a property. Issues listed include plumbing, electrical, heating, and air conditioning service requests. Some residents reported dirty houses, mold issues, rodent droppings, broken appliances, and exposed wiring — issues that likely would have been noticed during a property inspection.

These challenges were well known to Invitation Home employees, with one employee sharing in the FTC press release, “The number of resident complaints I field from new move-ins related to the home not being lease ready is both alarming and growing.”

The complaint also alleges Invitation Homes employed unfair eviction practices, even during the COVID-19 pandemic when both national and state eviction restrictions were in effect. Invitation Homes allegedly discouraged renters from submitting the CDC declaration required to prevent eviction, steering them instead toward the company’s own “Hardship Affidavit,” which, despite its name, offered no protection from eviction.

In response to these and other allegations, the FTC has proposed a settlement (which Invitation Homes has accepted), requiring the landlord to turn over $48 million to give refunds to consumers harmed by the company’s unlawful actions. The settlement is currently waiting on approval from a federal judge.

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Protect yourself from unscrupulous landlords

If you find yourself in a similar situation, there is recourse. When you move into a new home, record a walk-through and document any damages, including wall scuffs, cracks in walls, ceilings, or flooring, broken windows, indications of past water damage, mold, or evidence of pests. Save this file in a secure location, like the cloud, so you can prove the condition of the property when you took possession.

Make sure you understand the laws in your city or state and your rights. Searching for “renters’ rights in ” should direct you to resources relevant to your area. Depending on your location, your landlord might have a specific amount of time to respond to maintenance requests, especially for water and heating issues.

For example, in Illinois, landlords have 14 days to begin repairs after water damage. If they fail to address the problems, tenants can seek damages, find temporary housing, or even end their lease. There may be specific processes landlords are required to follow to process an eviction. Failure to follow these legal requirements may prevent landlords from evicting in bad faith.

Make sure you document attempts to reach your landlord through email, phone, text, or in person. Record the date, time, and what occurred. If your landlord refuses to respond to maintenance requests, submit a formal written request through certified mail, which provides proof of mailing and delivery. This creates a paper trail that shows the landlord has been notified of issues.

Finally, be aware of local and federal organizations that can help you. Search for local renter’s advocacy groups or a renter’s rights lawyer in your area. These groups can help you navigate the court process if it’s required. If you suspect deceptive practices, such as undisclosed fees or unfair withholding of security deposits, file a complaint with the FTC at reportfraud.ftc.gov or call 877-382-4357 to start the process.

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Danielle Antosz Freelance contributor

Danielle Antosz is a freelance contributor to Moneywise.

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