D
allas-based Invitation Homes has agreed to pay a proposed $48 million settlement after the Federal Trade Commission accused the company of engaging in "unlawful actions against customers." The FTC alleges that Invitation Homes, the largest landlord of single-family homes in Dallas County, deceived renters about lease costs, charged undisclosed junk fees, failed to inspect homes before new residents moved in, and unfairly withheld security deposits.

    The proposed settlement requires Invitation Homes to clearly disclose its leasing prices, establish policies for fairly returning security deposits, and stop other unlawful behavior. The company will also be required to list all monthly fees in a home's advertised rental price and notify consumers about programs to help people facing eviction.

    The FTC complaint alleges that Invitation Homes charged renters "mandatory junk fees" that could exceed $1,700 per year, which were not included in the advertised rent. Renters paid nonrefundable application fees and learned of the higher price only after receiving a copy of the lease. The company also failed to conduct inspections before renters moved in and did not provide promised 24/7 emergency maintenance.

    Between 2018 and 2023, residents in 33,328 properties submitted at least one work order within the first week after they moved in, often due to issues such as mold, broken appliances, and exposed wiring. Invitation Homes also unfairly withheld security deposits, charging renters for normal wear and tear that existed before they moved in.

    The company is also alleged to have used unfair eviction practices, including during the COVID-19 pandemic. The FTC alleges that Invitation Homes "steered" renters away from filing the Centers for Disease Control and Prevention's eviction protection declaration and instead asked them to complete its own hardship affidavit, which provided no eviction protection.

    The proposed settlement must be approved by a federal judge before it can take effect. In a statement, Invitation Homes said the agreement "contains no admission of wrongdoing." The company will use the $48 million settlement to refund customers harmed by its alleged actions.