More than 444,000 people who rented homes with Invitation Homes will soon receive checks as part of a $47.2 million settlement stemming from a 2024 lawsuit filed by the Federal Trade Commission.
The Dallas-based company, which owns and/or manages more than 110,000 single-family homes in the U.S., is accused of deceiving 441,131 consumers with undisclosed fees and charges totaling $45 or more. People who paid for certain fees and charges between January 2021 and September 2024 will be eligible for checks that will be sent by the FTC.
One of the largest single-family home landlords in the country, Invitation Homes is currently advertising thousands of available rentals in 13 different states, heavily concentrated in core markets like Atlanta, Tampa, Phoenix, Charlotte, Orlando, Miami, Jacksonville, Denver, and Las Vegas.
As part of the FTC settlement, the corporate landlord will be required to “clearly disclose its leasing prices, establish policies and procedures to handle security deposit refunds fairly, and stop other unlawful behavior.” Its rental listings currently include a breakdown of the various fees included in the all-in-rent fee.
Renters who paid Invitation Homes $45 or more for covered fees or charges between January 2021 and September 2024—and who have not already received a credit or refund from the company—will be eligible for payment. The FTC will be sending out the checks, which must be cashed within 90 days.
Though the company agreed to pay more than $48 million to compensate consumers, that amount is slightly more than the amount the FTC will send out—totaling about $106, on average, for each affected renter.
INVITATION HOMES INVITES SCRUTINY
The settlement comes about 18 months after the FTC sued Invitation Homes in September 2024 alleging various unlawful actions, according to the settlement details. Such actions included deceiving applicants about lease costs, charging renters undisclosed fees, failing to inspect homes before residents moved in, unfairly withholding tenants’ security deposits or imposing deceptive and unfair charges when renters moved out, and not permitting renters to opt out of certain services, like “smart home technology.”
The company didn’t immediately respond to a request for comment from Fast Company.
Dallas Tanner, CEO of Invitation Homes, was asked about the company’s legal issues with the FTC during a February meeting to discuss another company he leads, MIXT Industries, leasing a golf course in Polson, Montana. Though Tanner said he “can’t speak publicly about things like that,” he did tell the public meeting that “it became very popular” during President Joe Biden’s administration to “sort-of pick on housing groups,” according to reporting by the Lake County Leader.
But Invitation Homes has been under fire on multiple fronts recently—and from both sides of the political aisle. It’s among a number of large corporate buyers of single-family homes that’s drawn the ire of President Donald Trump and other lawmakers in Washington, D.C. and beyond. This January, Trump signed an executive order, “Stopping Wall Street from Competing with Main Street Homebuyers” to crackdown on large, institutional investors purchasing single-family homes.
In 2024, the company agreed to a $19.9 million settlement to resolve claims that alleged Invitation Homes had failed to obtain the necessary permits to avoid permit fees and property tax increases in 35 California cities.
Shares of Invitation Homes (NYSE:INVH) rose nearly 0.4% on Friday, though the stock has tumbled more than 23% in the past year.