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nvitation Homes, the country's largest single-family landlord, has agreed to pay $48 million to settle allegations of using "junk fees" and other hidden costs. The Federal Trade Commission launched a three-year investigation into the Dallas-based company, which found that Invitation Homes collected tens of millions of dollars in undisclosed charges from renters between 2021 and 2023. These charges included smart-home technology, utility management, and services not disclosed until after a lease was signed.

    The FTC also accused Invitation Homes of making false promises about property conditions, withholding security deposits unfairly, and failing to inform renters about federal Covid-19 eviction protections. The company returned only 39.2% of total security deposit dollars collected between 2020 and 2022, compared to the national average of 63.9%. This marks the first enforcement action from the FTC's newly formed Renters Working Group.

    Under the settlement terms, Invitation Homes must list mandatory monthly fees in advertised rentals and destroy select consumer financial data collected before the agreement. The company is also barred from withholding security deposits for repairs not caused by tenant damage. A federal judge will need to approve the settlement, which includes no admission of wrongdoing.